Explore the nine major areas of Web3's explosion in 2024

Communication and Sharing.

ETH L2 Summer

In the cryptocurrency space, Ethereum and Layer 2 scaling technologies have emerged as one of the most promising cross-chain ecosystems. Projects like Starknet, zkSync, Scroll, and Blast are gradually being rolled out, sparking intense competition and technological innovation in the L2 domain.

Modularization

With the launch of projects like Celestia, there's a trend showing the decentralization of market share in the Decentralized Application (DA) layer, moving away from Ethereum's dominance. Platforms such as OP Stack and Polygon CDK offer mature smart contract frameworks, integrating cutting-edge concepts from Bitcoin's BitVM paper into Bitcoin's DA development. Rapid developments in niche areas like decentralized transaction sequencers and RaaS services signify blockchain technology's swift progression towards modularization.

BTCfi Explosion: Exceeding 10% Liquidity Release of Bitcoin

Following the narrative of the inscription, we are witnessing a surge in Bitcoin's Layer 2 technology and the rise of applications based on Bitcoin. With Bitcoin's liquidity expected to exceed 10% release, BTC Financial (BTCfi) is poised to carry a market value exceeding $100 billion.

Restaking: A Nested Consensus Lego

In the modular blockchain narrative, exploration of the consensus layer remains relatively limited, with Bitcoin and Ethereum offering widely acknowledged consensus security. The introduction of Restaking provides emerging blockchain projects with adequate security during the startup phase, avoiding unhealthy token mechanisms characterized by excessive token emission inflation. In this narrative, Babylon dominates the Bitcoin ecosystem, with BTC-related ecosystems gradually adopting it. EigenLayer leads Ethereum, already branching out into the narrative of LSD with the emergence of LRD. Above the narratives of LSD/LRD, Pendle stands as a unique project in the ecosystem, continuously demonstrating impressive TVL, user data, and token price performance by splitting principal and interest.

Gamefi's Second Cycle

The widespread adoption of MPC wallets has expanded users' technical knowledge. After three years of iteration, games have become more diverse and engaging, attracting a larger user base compared to before. The diversification of game content will increase the complexity of the economic system, gradually moving away from purely Ponzi characteristics.

AI+Web3: A Long-term Narrative of Algorithms, Computing Power, and Verifiability

AI plays a significant role in injecting new vitality into the cryptocurrency field through continuous iteration. Onchain AI utilizes smart contracts to automate and dynamize machine learning and artificial intelligence. Additionally, blockchain technology provides transparent and verifiable solutions for AI, such as zero-knowledge machine learning (zkML) and verifiable machine learning (opML). Key elements such as AI models, GPU computing power, data provisioning, and data labeling can also be integrated into the blockchain.

Depin: Physical Flywheel DeFi

As infrastructure continues to improve, online and offline token distribution and service provision models will become mainstream in cryptocurrency applications. This model will drive exponential growth in the Depin network.

Social Experimentation in Monetizing Social Interactions

Despite the failure of Friend.tech's attempt, the potential for monetizing social interactions has been adequately demonstrated. Simultaneously, resistance to censorship and enhanced security remain urgent needs in the social domain of Web3. Social protocols like Lens and Farcaster still represent hope and opportunity.

DeFi Derivatives

The financial sector has always been one of the most valuable and high-yielding application areas for blockchain. GMX's global shared liquidity pool and Gains Capital's efficient synthetic solutions continue to lead the market. During this bull market, futures protocols such as Aevo and Whales have also sparked a pre-market surge. We believe that derivatives are one of the most promising long-term narratives in the fundamental landscape.

Development Contacts