Authors: @0xdddd111, @lviswang, @FINT1121, @Jessemeta, @pikpika6, @shouyi16, @0xWay, Core Contributors of Biteye

Editor: Crush, Core Contributor of Biteye

On January 11, the BTC ETF finally received approval from the SEC, and today, 11 BTC ETFs officially launched trading on the US stock market. These past few days have been a milestone moment in the history of cryptocurrency.

As ETFs bring BTC into a larger mainstream world, and with the upcoming BTC halving event at the end of March, 2024 is undoubtedly a very important year for the crypto space.

So, what sectors should we pay attention to in 2024? In this issue, we present an analysis and outlook on the seven major sectors for 2024, collaboratively written by members of the Biteye community.

01 BTC Ecosystem

Looking back at 2023, the main narrative of the BTC ecosystem is quite clear. Since the BRC20 standard was proposed by Domodata on March 8, a series of inscriptions have rapidly flourished on the BTC main chain. The narrative of new assets combined with BTC's narrative allowed the first inscription asset, ORDI, to break the $1000M market cap within a year.

As on-chain transactions increased, issues of network congestion and high transaction fees began to emerge. When popular inscriptions were minted, BTC's GAS fees soared to levels unacceptable for ordinary users, highlighting the need for BTC scalability, which has now taken center stage in future narratives. So, what directions can we focus on in the BTC ecosystem moving forward?

1. New Asset Issuance Protocols for BTC

Atomicals, an optimization project for Ordinals and BRC20, addresses the issue of BRC20's excessive reliance on centralized off-chain indexing. It utilizes and expands upon Bitcoin's UTXO model, treating each satoshi's UTXO as a specific Atomical token or digital object. $ATOM is the first token of Atomicals, minted through POW, and is considered more decentralized by the community, aligning with BTC's originalist philosophy. Due to its technical superiority, it currently enjoys strong community consensus.

SRC-20, a token standard developed based on the Stamps protocol, was invented by @mikeinspace. The main difference from Ordinals is that Ordinals' image/text information is stored in witness data, while Stamps data is stored in transaction outputs. This difference gives Stamps an important characteristic: it can always exist on the BTC chain, and full nodes must synchronize this data.

Bitmap is the first metaverse project in the BTC ecosystem, mapping each transaction input in Bitcoin blocks into parcels, forming a block or area. Bitmap also proposed the BRC-420 protocol, which is an asset protocol based on Bitmap that combines multiple inscriptions to create a complex inscription, generating a variety of assets from small characters and pets to various other assets.

Other projects worth noting include CBRC, Veda, Rune, and Sat.

2. BTC Infrastructure

The current mainstream BTC infrastructure projects are as follows, indicating that future BTC infrastructure will mainly be divided into several major directions:

• Cross-chain bridges
• IDO platforms
• DEX exchanges
• Lending platforms
• Trading markets

3. BTC Scalability Solutions

The development directions of BTC scalability solutions mainly include two approaches: the Lightning Network and sidechains.

1) Lightning Network

The Lightning Network was proposed by Joseph Poon and Tadge Dryja in 2016 and is one of the Layer 2 solutions for Bitcoin.

The Lightning Network consists of payment channels designed to enable fast and low-fee transactions, allowing users to make off-chain payments without confirmation, with final settlement occurring on the main chain. Theoretically, the Lightning Network can achieve a processing speed of millions of transactions per second.

The Taproot Asset protocol was proposed by the Lightning Labs development team on October 19, 2023, as an asset issuance protocol. Currently, the mainstream platform for Taproot Asset issuance and trading is Nostr Aeest, where its dual tokens ($TREAT & $TRICK) are mainly used for staking to participate in new offerings.

2) Sidechains

Stacks ($STX): Stacks is currently the most developed Layer 2 in the BTC ecosystem, utilizing a consensus algorithm called POX (Proof of Transfer).

By anchoring transactions, it packages transactions and broadcasts the block information of transactions on the Stacks chain to the Bitcoin network to ensure transaction security.

Stacks provides a complete execution environment (i.e., any application that can be built on Ethereum and other chains can be built on the Stacks layer).

Transaction validators and miners in Stacks can stake $STX and $BTC respectively to mine $BTC and $STX tokens to maintain network security.

From Stacks' roadmap, the launch of the Nakamoto network in Q1 this year and the release of SBTC will be important milestones in Stacks' development and are worth close attention.

3) Others

In addition to the protocols mentioned above, other BTC scalability solutions worth noting include the RGB protocol, the Bitcoin sidechain project Rootstock ($RIF), BitVM, BEVM, and so on.

02 Modular Blockchains and Data Availability DA

1. Modular Blockchains

Modular blockchains are specialized blockchains that focus on specific functions (such as Execution, Consensus, Settlement, or Data Availability DA) and rely on other blockchains or services to perform the remaining tasks.

This design can enhance project security and save project teams' energy, allowing them to focus on developing core features.

Modular blockchains solve the performance bottlenecks of traditional monolithic chains by decoupling various functions and components of the blockchain, using specialized providers for each module to provide customized blockchain solutions.

There are many projects worth noting in the modular blockchain direction:

• Celestia ($TIA)

Celestia implements DA off-chain, ensuring data availability through Reed-Solomon erasure codes and a specialized Namespaced Merkle Trees structure, making DA cheaper and more efficient.

Although Celestia has already issued tokens, users can still indirectly participate in all modular projects using Celestia by staking in their accounts. Many recent projects in the Cosmos ecosystem have also included Celestia staking accounts in their airdrop ranges.

• Manta

Manta Network is a modular blockchain for zero-knowledge (ZK) applications and is the first to transition the data availability layer from the ETH mainnet to Celestia's Layer 2.

Since Manta transitioned DA from the ETH mainnet to Celestia last December, its transaction fees have decreased by 99.8%. Currently, Manta's TVL exceeds $800 million, second only to OP and Arb.

• AltLayer

AltLayer is a decentralized Rollup-as-a-Service protocol, with its entire stack designed modularly, allowing end users to choose Rollups based on their needs.

Rollup SDKs support Arbitrum Orbit, OP Stack, etc. The data availability layer supports Eigenlayer, Celestia, Astria.

AltLayer has already released the first phase of testnet tasks and OAT on Galaxy, and users can pay attention to subsequent testnet tasks, which may empower OAT in the future. Previously, Altlayer released the Ottie NFT series, which may have opportunities for token airdrops in the future.

• Cevmos

Cevmos is a rollup stack co-developed by the Cosmos EVM application chain Evmos and Celestia, aiming to become the best settlement layer for EVM rollups built on Celestia.

Cevmos is an abbreviation for Celestia, Evmos, and Cosmos.

2. Data Availability Layer

The data availability layer is one of the main development directions of modular blockchains. Celestia is a modular blockchain specifically focused on data availability.

Data availability mainly refers to the public storage of transaction data providing verification services. The data availability layer ensures that data is correct, protected, and easy to verify. In the current scenario, the most direct benefit is that the data availability layer can significantly reduce gas fees for project parties and users.

Currently, ETH L2 needs to upload calldata to the ETH mainnet, meaning that the ETH mainnet is responsible for DA, which incurs a huge cost.

From the significant reduction in fees observed in Manta, it is evident that just from the cost-saving advantage, combined with the current market enthusiasm, DA has become a real demand for Web3 project parties, with very broad market prospects.

However, problems arise as well; a larger pie means competition among DAs, leading to a DA War. In the near future, many new DA projects will be launched (the following are DA service providers, excluding users utilizing DA services):

• Avail, a modular blockchain project led by the Polygon team, is a major competitor to Celestia. Currently in the testnet phase, Avail can be seen as a project benchmarking Celestia, having launched an incentive testnet for "node conflicts," allowing users to participate in running nodes for rewards.
• Fuel, unlike Celestia, is a modular blockchain focused on the execution layer, using the SwayLang language, and currently allows users to obtain corresponding Zealy identities.
• EigenDA provides low-cost, large-scale rolling data availability, secured by ETH Restaking. Users can try participating in this project through Eigenlayer.

At the same time, some older projects will also support their exclusive DA. At that time, choosing which DA to use will become a key point of market competition.

For example, ETH's Danksharding is essentially also DA, and its verification technology is more complex than Celestia's.

Ethereum founder Vitalik has repeatedly endorsed his own DA technology, stating on social media that using third-party DA services cannot be considered Ethereum's Layer 2, establishing a moat for his own DA.

Essentially, DA is a business aimed at project parties, with little perception from the user level. Therefore, the soft power of DA project parties, such as first-mover advantage, connections, and discourse power, may be more important than the technical details themselves. This year, the DA War will be very exciting.

03 DePIN

As expected in Biteye's 2023 outlook report, DePIN has become a hot sector, and the crypto space seems to have found large-scale practical scenarios beyond finance.

DePIN refers to decentralized physical infrastructure networks that use cryptocurrency incentives to coordinate the launch and ongoing operation of decentralized infrastructure.

DePIN is an important link between the virtual crypto space and the real world, promoting data security and effectively coordinating idle resources, enhancing our lives while also showcasing the practical value and charm of cryptocurrencies to more people.

In the early stages of project launch, DePIN uses tokens or airdrop expectations to incentivize user participation in ecosystem construction, attracting strong developers to provide more cost-effective products.

As more users utilize products or services, the project's revenue increases, which can be used for market cap management and further marketing, rewarding both demand and supply sides of the product, incentivizing more participants and attracting market funds' attention, creating a prosperous ecosystem.

DePIN will have a good positive flywheel effect during bull markets and has recently attracted attention from Binance and OKX, which produced introductory videos on DePIN themes.

In a joint research report by Messari and Escape Velocity, the DePIN sector is divided into computing, wireless, energy, artificial intelligence, services, and sensors.

Below are representative projects worth noting in each sub-sector, not investment advice. Readers can continue to explore and discover more interesting projects that have practical benefits for society.

• Computing

Driven by machine learning and AIGC, the amount of data generated is growing exponentially, which also drives the need for more secure decentralized storage. Filecoin ($FIL) is the leader in the storage sector and ranks high in DePIN sector revenue.

• Wireless

Helium ($HNT) is a decentralized wireless network protocol and one of the earliest and most famous DePIN projects, sharing the top spot in DePIN sector funding with Filecoin with a funding amount of $250 million.

The sub-DAO Helium Mobile ($MOBILE) provides users with discounted phone plan services and has recently become a shining star due to the rapid rise in token prices.

• Energy

Arkreen is a global decentralized renewable energy data network that tokenizes trustworthy and verifiable data from renewable energy devices, promoting carbon neutrality.

• Artificial Intelligence

Render Network ($RNDR) is a decentralized GPU rendering network that connects idle GPUs to assist in movie and animation rendering, collaborating with well-known companies like Stable Diffusion and Netflix.

• Services

Braintrust ($BTRST) is the first decentralized talent network that matches top freelance tech talent with the needs of large companies.

• Sensors

Hivemapper ($HONEY) is a mapping network where contributors collect street view images through Hivemapper's dashcam, creating the latest maps.

Investors have two main ways to participate in DePIN sector investments.

• One way is to act as a supplier by purchasing relevant products and equipment to provide services, recouping costs and making profits through the obtained token rewards.
• The other way is to purchase relevant tokens, as during bull markets, project parties will use the revenue from sold equipment to stimulate price comparisons, thereby encouraging people to continue purchasing products and equipment, rapidly advancing the construction of the ecological network.

However, it is important to note that the market-making willingness in the DePIN sector will be stronger. Currently observed token prices often exhibit volatile fluctuations, and investors may consider segment trading, entering in batches, or grid trading.

Additionally, we can consider enjoying more cost-effective services from DePIN from the perspective of demand parties.

04 New Public Chains and Ethereum Ecosystem

Public chains are the backbone of the crypto industry, the largest infrastructure. With the development of blockchain technology, we believe that high-performance single chains (parallel EVM), Ethereum restaking, the Cancun upgrade, and modular blockchains will be the four major directions to focus on in 2024. (We have already introduced modular blockchains in the first section.)

1. Parallel EVM Public Chains

Recently, Paradigm's CTO Georgios proposed that 2024 will be the "Year of Parallel EVM," and Paradigm is actively exploring technology internally.

One of the sources of EVM's performance bottlenecks is that its execution of transactions is processed sequentially, leading to network congestion and delays during peak times, while the gas auction mechanism causes high gas fees, which is the most frustrating issue for users using Ethereum.

If EVM can achieve parallel computing, it will greatly improve network processing speed and system throughput, enhancing EVM's performance and efficiency. Currently, there are two main solutions being implemented:

1) Independently designed parallel EVM public chains and

2) Using a parallel processing layer as Layer 2 to execute transactions.

Projects worth noting:

• Sei ($SEI)

Sei is a Layer 1 optimized specifically for trading, adopting an optimistic parallel solution, expected to implement parallel EVM in its latest V2 version. Additionally, Sei allows Cosmwasm smart contracts to interact with EVM smart contracts, providing a more diverse execution environment.

• Eclipse

Eclipse is a modular rollup platform, with the biggest feature being bringing Solana to Ethereum, using the parallel computing Solana virtual machine as the execution layer, Ethereum as the settlement layer, and Celestia for the DA layer, with Risk Zero for fraud proofs, creating a parallel EVM public chain.

Eclipse is currently running on the testnet, and users can apply for testing through the official website.

• Lumio

Lumio is a Layer 2 based on OP rollup, aiming to use Aptos as a second-layer execution layer. The Move-based Aptos once had its glory and has the potential to shine again in the parallel EVM sector.

Lumio is currently in closed testing on Ethereum and will gradually open to NFT holders and Liquidswap users. Users can pay attention to testing qualifications and participate in the testnet early.

2. Ethereum Ecosystem

Ethereum Layer 2 experienced explosive growth in 2023, with more than ten Layer 2 mainnets launched. According to L2Beat, the total TVL of Ethereum Layer 2 has reached $19.35B, and OP Stack and Polygon CDK have further reduced the difficulty of launching a Layer 2 public chain, so it is predicted that the total TVL will continue to increase in 2024 as more Layer 2 projects are implemented.

1) Restaking Narrative

In addition to Layer 2 networks utilizing Ethereum's security, EigenLayer also leverages Ethereum nodes to facilitate the construction of new public chains.

EigenLayer is a middleware protocol based on Ethereum that introduces the concept of restaking, allowing Ethereum nodes to restake their staked ETH or LSD tokens to other oracles, bridges, and public chains, enabling them to enjoy Ethereum-level security at a lower cost, while users can obtain multiple returns.

Recently, the market has seen liquidity from staked Eigenlayer being converted into new layer liquidity tokens LRT, giving rise to the restaking liquidity nesting play LRTfi. Notable projects include:

• Pendle ($PENDLE)

Pendle is about to launch ether.fi's liquid staking token eETH, allowing users to deposit eETH into Pendle's LP to earn EigenLayer points, EtherFi points, and multiple staking rewards.

• Swell

Swell is an LSDfi protocol where users can stake ETH to earn pearls and staking rewards. Pearls are linked to airdrop tokens and will soon add restaking functionality to their swETH, allowing users to receive rswETH after staking ETH, releasing ETH liquidity and increasing additional returns.

• Puffer Finance

Puffer is a liquid staking protocol based on Eigenlayer, addressing the penalty issues in Ethereum and Eigenlayer networks through its proprietary Secure-Signer tool and RAV technology, providing participants with low-risk dual returns, with plans to launch the mainnet in 2024.

2) Cancun Upgrade

On the evening of January 4, the 178th Ethereum core developer meeting confirmed the timeline for the testnet Dencun upgrade, with the testnet activation time for the Cancun upgrade starting on January 17.

The core content of this Cancun upgrade is the implementation of the EIP-4844 proposal, which aims to increase the total number of transactions that Ethereum can process.

Before the Cancun upgrade, L2 transaction data was stored in L1 transaction calldata. This method is costly and has limited calldata space.

After the Cancun upgrade, L1 will store the data submitted by L2 in a new location called "blob," which is cheaper and has more space for storage.

It is important to note that the revenue source for L2 essentially comes from the gas fees charged to users minus the gas fees paid to Ethereum. After the Cancun upgrade, the fees paid by L2 to Ethereum will be significantly reduced, meaning that L2's revenue levels can increase substantially.

Therefore, the Cancun upgrade is essentially beneficial for all Layer 2s that use Ethereum as a data availability layer, including all related Layer 2s such as Optimistic rollups and ZK rollups.

In the upcoming quarter, relevant targets related to the Cancun upgrade will have certain fundamental benefits.

The most obvious beneficiaries are OP and ARB, which are two native protocols in their ecosystems that will also have some interconnected effects, such as OP's largest DEX—Velodrome ($VELO) and GMX ($GMX) on ARB.

Additionally, smaller Optimistic rollups, such as MetisDAO ($METIS) and Boba ($BOBA), will also benefit. MetisDAO even plans to create a decentralized sequencer Layer 2, which has dual narratives worth paying attention to.

Furthermore, since EIP-4844 introduces a temporary storage solution, data stored in the blob will be deleted after approximately one month.

If L2 wants to retain relevant data long-term, it will need to be stored by other storage service providers based on actual needs, which will indirectly increase the demand for decentralized storage solutions, also benefiting the decentralized storage sector.

05 GameFi

The GameFi sector currently classifies games into two categories:

1. Full-chain games (FOCG)

2. Non-full-chain games (NFT assets + off-chain games)

1. Full-chain Games

Full-chain games refer to games where not only assets are on-chain, but also the game state storage and execution logic are on-chain. Therefore, compared to non-full-chain games, full-chain games are more decentralized and have stronger composability.

However, full-chain games are still in their early stages, and the entry barrier for users is relatively high, so related tokens or NFTs may need to be held for a long period to potentially gain returns.

The two main game engines in the full-chain game (FOCG) sector are:

1. MUD

2. Dojo

The former belongs to Op-stack, while the latter is on Starknet.

The MUD game engine was released by Lattice, which is a sub-project of 0xPARC, formed by the team behind the full-chain game pioneer Dark Forest, and they received donations from the Ethereum Foundation and Gitcoin.

Currently, the game Sky Stife running on MUD is worth paying attention to. If you missed the last season without obtaining a Pass, don't miss the new season, which starts on January 8.

Dojo is a full-chain game engine developed on the Starknet network by core members of Loot Realms, the founder of Cartridge, and the founder of Briq.

Cairo offers higher efficiency and scalability compared to Solidity, which is why Dojo's core developers chose Starknet over Op-stack.

Notable projects include the Loot Realms series:

1. Realms: Eternum (a sandbox strategy game), participation requires purchasing a Realms NFT. Players can earn the token $Lords by playing the game or staking Realms. The game is not fully open yet.

2. Loot Survivor (a text-based Roguelike game) and Shoshin launched by Topology are already live on the mainnet, and players can try them on the testnet, requiring at least 25 $Lords to play.

2. Non-full-chain Games

Non-full-chain games refer to games where some game assets are on-chain. Currently, most NFT-related games fall into this category.

Although the NFT market has cooled this year, NFTs in the gaming sector are still very hot. Analyzing a project generally involves three perspectives:

1. Technology

2. Operations (breadth)

3. Community (depth)

Among these, the most important are 2 and 3, while 1 is relatively secondary.

Notable project: Matr1x

Matr1x aims to create a premium web3 gaming platform, and the first shooting game is already available for experience. The related community is also very active, making it one of the few gaming products that have landed, with high community enthusiasm.

Of course, this game also faces challenges: how to attract web2 users? Since the number of web3 users is limited and most only care about profits rather than games, the project team needs to attract web2 players to ensure the game's longevity.

Matr1x's approach includes: Douyin, Bilibili live streaming, and hosting e-sports competitions. From the game data, its proportion of web2 players is not low.

There are two ways to participate in Matr1x:

1) Stake NFTs to earn tokens;

2) Participate in subsequent game activities or public tests.

If the GameFi trend arrives, non-full-chain games will receive attention first. When the entire ecosystem experiences capital overflow, full-chain games will also be uplifted.

06 AI & Crypto

According to a report from Binance Research, in 2023, funding for AI-related Web3 projects grew strongly, reaching $298 million, far exceeding the total funding amount for AI-related projects from 2016 to 2022.

At the same time, AI-related tokens overall outperformed BTC and ETH in 2023, marking it as the AI year for the entire world. As the importance of AI in the Web2 world gradually increases, we should also consider how AI and blockchain can be combined, what directions this combination can take, and ultimately which projects we can focus on.

1. Decentralized Computing Networks

With the increasing demand for AI models, whether large language models or customized AI models based on specific scenarios, the intelligent enhancement of AI relies on a fundamental aspect.

Massive training, and the essence behind that training is computational power. In traditional large model training, the training environment is conducted in centralized data centers, using high-performance computing devices as clusters connected via high-speed networks to share computational tasks.

In the crypto environment, sharing computational power and idle bandwidth can effectively provide more computational power for training AI models, which is one of the exploration directions for the combination of AI & Crypto.

The decentralized mechanism of Web3 allows AI to become more democratic from the ground up. By deploying, training, and using AI in a decentralized manner, users' data privacy can be better protected while also having the opportunity to earn rewards by sharing data.

However, it is important to note that decentralized computing networks have communication latency issues due to the distributed distances, requiring nodes to spend more time waiting for data transmission, making them less suitable for models that prioritize training efficiency.

2. AI & Crypto Applications

In Web2, well-known AI applications include chatbots like Chat GPT, AI search engines like New Bing, image generation tools like Midjourney, and virtual characters like Character AI. In Crypto, if AI wants to combine with Crypto at the application level, possible development directions include:

1) Similar to RSS3, building a chat bot or AI assistant that is more Crypto Native and tailored to the needs of Crypto players by incorporating on-chain data and data sources from Twitter, Reddit, Lens, Farcaster, Mastodon, etc., based on the ChatGPT model.

Or like 0xScope, which has built an AI cognitive model based on knowledge graphs, allowing users to obtain and understand on-chain data for investment and trading analysis through the AI trading assistant Scopechat.

2) Additionally, generative AI can bring new narratives to Web3 applications, such as embedding virtual humans, character AIs, and other innovative elements into ecosystems like gaming and social media, developing entirely new gameplay.

From the two AI-related projects recently launched by Binance, it is evident that the world's largest exchange is very optimistic about the future of the AI sector. The two launched projects are AI image generation and AI virtual idols, both of which explore the application layer of AI in Crypto.

In addition to the projects mentioned above, other projects worth noting include:

1) Bittensor ($TAO): A decentralized machine learning network based on blockchain that coordinates AI model collaboration using blockchain and mining incentive mechanisms;

2) FetchAI ($FET): A blockchain-based machine learning platform aimed at enabling traditional products to access AI through Fetch.ai tokens without changing underlying business applications;

3) Dynex ($DNX): A neuromorphic supercomputing blockchain based on the DynexSolve chip algorithm, proposing a useful proof of work (PoUW) method to improve the speed and efficiency of decentralized networks, aimed at providing computational power for machine learning, fintech, and biopharmaceuticals;

4) Grass: A decentralized incentive network scraping network where users sell their unused network resources through Wynd Network to companies, laboratories, and other institutions. Grass's buying companies seek unused network resources to access more diverse IP addresses for market research or executing web scraping, training AI, and other tasks.

5) Clore.ai ($CLORE): A platform providing GPU computing power rental services based on PoW. Users can rent out their GPUs for AI training, video rendering, and cryptocurrency mining tasks, providing services to individuals and institutions in need of computational power.

If users want to participate deeply in the above projects, the main ways to engage are renting out computing power or mining. For example, Grass currently has opened a Chrome extension account for computers, allowing users to register and earn points by running on Wi-Fi, which can later be exchanged for tokens based on points after the project issues tokens.

(Note: Most AI & Crypto projects are currently in the exploratory stage, with various application scenarios being combined, but whether the projects themselves have real demand needs careful identification.)

07 MEME

The Meme sector, as a unique branch of the cryptocurrency field, has attracted widespread attention in recent years.

• A meme can be a misspelling (HODL), a catchphrase (GM, LFG);
• A meme can be a form of counterculture (Doge, RFD);
• A meme can also be a liquidity overflow "arbitrage" (Aidoge, as airdrop expectations appeared on Starknet with Stark Inu).

The characteristic of this sector lies in its reliance not on traditional business models or specific technical applications, but on community consensus and cultural attributes. The value of MEME sector tokens largely depends on community recognition and emotional connection rather than traditional asset valuation models.

From the $PEPE that rose from the bear market, the highly memeable $BITCOIN, to the $BONK that emerged during the bull market and the $Silly that was promoted by the founder of Solana, we can see that strong MEME coins often share the following characteristics:

1. Cultural Resonance and Community-Driven.

Tokens in the Meme sector are often intertwined with popular internet culture. For example, Dogecoin ($DOGE) and Shiba Inu ($SHIB) stem from popular internet memes or cultural symbols.

This cultural resonance spreads easily within internet communities, attracting a large number of followers and supporters, generating heated discussions on social media, and increasing the visibility and appeal of these tokens.

2. Social Media and Celebrity Effects

Social media has a significant influence on Meme coins, with celebrities like the founder of Solana tweeting about Silly Dragon ($SILLY) significantly boosting its market cap. This celebrity effect and the viral nature of social media can greatly enhance a coin's visibility and trigger FOMO among investors in a short time.

3. News Coverage and Media Attention

Meme coins often become the focus of news reports due to their unique imagery and sometimes bizarre stories, further increasing public attention on these tokens.

Regarding memes, we also need to understand how to judge the strength of meme consensus, meaning how many people in the market are willing to pay for a meme.

In the early stages of a meme, we often can only assess its investment value through community activity, IP concepts (riding the wave), and the project team's strength and cultural background—these "intangible" conditions are the biggest risks of early meme investments, as they can either go to zero or rug.

When a meme successfully "survives" for a period, we can attempt to judge whether it is worth investing in from multiple dimensions such as the number of holders, trading volume, and K-line support (for example, the increasing number of people mentioning the meme on Twitter).

As memes become known to more people, their consensus continues to strengthen, and the risks of going to zero or rug will gradually decrease. However, at this point, the returns from memes will also be discounted. As the saying goes, risk and return coexist.

Overall, the Meme sector represents a new direction for diversification and cultural integration in the cryptocurrency market. It is not just a speculative direction but also a carrier of cultural expression and community consensus. With more cultural elements and creativity joining, the Meme sector is expected to continue developing, but the risks it brings should not be overlooked.

Therefore, for ordinary investors, understanding the cultural attributes of meme coins and acquiring early chips is crucial. Most importantly, cultivating a familiar logic and judgment and executing it is key to participating in the Meme sector.

08 Conclusion

In conclusion, 2023 has been a year of transformation and innovation in the blockchain and cryptocurrency fields. From the launch of the first modular blockchain, the rise of the BTC inscription ecosystem, to the combination of AI and crypto, each link has injected new vitality into this industry.

As we step into 2024, we believe these developments will continue to influence the direction of the industry. Staying attentive and learning, rationally analyzing market dynamics, and exploring new sectors may be essential courses for everyone in 2024.

In 2024, Biteye will remain true to its original intention, continue to select quality projects, and work with partners to unlock the secrets of wealth!