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ArkStream Capital: 9 major tracks where Web3 will explode in 2024

ArkStream Capital

24-02-22 22:57

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Original author: ArkStream Capital

1、ETH L2 Summer is coming as scheduled

ETH+L2 is essentially the largest homogenous cross-chain ecosystem. With the launch of Starknet/zkSync/Scroll/Blast, the competition in the L2 market will intensify with a showdown between technological and market forces.

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Starknet / zkSync / Scroll / Blast / Manta

2、Modularization is the inevitable iteration of public chain technology

With the launch of Celestia, there are signs that the market share of the DA layer is breaking away from Ethereum's exclusive monopoly. Currently, mature smart contract architectures are provided by OP Stack, Polygon CDK, and others, which are also exploring the DA transformation of Bitcoin based on the cutting-edge BitVM paper. For example, the proliferation of sub-sectors such as shared/decentralized sequencers and RaaS services signifies the rapid modularization and iteration of blockchain.

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Celestia / Altlayer / Dymension / Avail / Fuel / Espresso

3、BTCfi outbreak reaches 10% liquidity release of Bitcoin

The combination of fundamentalism and market trends will unleash unexpected energy from technology purists. The value of BTC liquidity release is a gold mine that has not yet been fully explored. After the inscription narrative, there will be a wave of BTC L2 and BTC applications. With the potential release of over 10% of Bitcoin's liquidity, BTCfi will carry a market of over $100 billion.

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Stacks / Merlin / B² Network / Chainway

4、Restaking's consensus stacking Lego

In the narrative of modular blockchain, there are very few projects exploring the consensus layer. Among them, Bitcoin and Ethereum provide the consensus security recognized by the entire network. The proposal of Restaking can help emerging blockchain projects obtain appropriate security at the start-up stage, thereby avoiding the unhealthy token mechanism of using excessive token emission inflation. The Bitcoin ecosystem is mainly based on Babylon, and related ecosystems of BTC have also gradually adopted Babylon. Ethereum is led by EigenLayer and has already derived the narrative of LRD (liquidity re-staking derivatives) on top of LSD's narrative. On top of the LSD/LRD narrative, Pendle, which splits principal and interest, is a unique project in the ecosystem, with impressive performance in TVL, user data, and token price.

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Eigenlayer / Babylon / Renzo / Puffer / Pendle

5、Gamefi's Second Cycle

The widespread adoption of MPC wallets has expanded user knowledge in the encryption industry. With 3 years of iteration, more interactive games will have stronger user acquisition capabilities compared to their predecessors. The increased richness of game content will increase the complexity of the economic system, gradually moving away from the pure Ponzi attributes of the previous cycle.

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Illuvium / Space Nation / Lumiterra / Matr1x

6、AI+web3: Long-term Narrative of Algorithms, Computing Power, and Verifiability

AI is the main narrative in the technology field, and its iterations will continue to inject vitality into Crypto. Onchain AI can use smart contracts to achieve automation and dynamism of machine learning and artificial intelligence. At the same time, blockchain technology provides transparent and verifiable solutions for various aspects of AI (such as zkML/opML). In addition, key elements such as AI models, GPU computing power, data feeding, and data labeling can all be integrated into the blockchain.

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TAO / OLAS / JANCTION

7、Depin-Physical Flywheel DeFi, Index Growth

is a new phenomenon-level online + offline token distribution and service provision model. As the infrastructure gradually improves, the application of Crypto will lead to exponential growth in Depin's network index.

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Mobile / Io.net / Meson / POKT

8、Social Monetization Experiment in Progress

Although Friend.tech's attempt failed, the explosive power of social monetization has been demonstrated, and censorship resistance and security are the call of social media for Web3. Social protocols such as Lens/Farcaster still carry hope.

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Farcaster / Lens / Nostr

9、DeFi derivatives, ready to go

The financial scene is always the most suitable high-value and Real Yield application for blockchain. GMX's global shared liquidity pool and Gains Capital's efficient synthetic solutions continue to lead the market. This bull market has also brought about a pre-market explosion in futures contracts such as Aevo and Whales. We believe that derivatives are one of the best long-term fundamentals narratives.