Web3 AI Daily Review (2024/9/1)

I. Attention Value - Market Highlights

1. Market Trends

(1) Macroeconomic Environment:

l The S&P 500 Index rebound is widely supported, not just reliant on tech stocks

Recently, the rebound of the S&P 500 Index is not solely dependent on a few standout tech stocks but has received broader market support. After experiencing severe volatility in early August due to a weak employment report and the unwinding of yen carry trades, the stock market achieved a V-shaped recovery. Keith Lerner, Chief Market Strategist at Truist Advisory Services, pointed out that the ratio of advancing to declining stocks has risen to 2, a phenomenon known as "breadth surge," which typically signals positive market performance in the next six to twelve months.

Despite a slight pullback in the S&P 500 and Nasdaq Composite Index this week following last week's strong rebound, the Dow Jones Industrial Average continues to trade near historical highs, demonstrating market resilience. Additionally, Federal Reserve Chairman Powell's remarks indicated that inflation is no longer a major threat, suggesting potential interest rate cuts in the future, further boosting market confidence.

(2) Web3 Sector:

l Anthropic CEO believes AI will be used for enterprise optimization rather than robot uprisings

Dario Amodei, CEO of AI company Anthropic, stated that future AI development may focus more on optimizing enterprise structures rather than robot uprisings. In a recent interview on the Econ 102 podcast, Amodei discussed various applications of AI, including military uses and the potential for human workers to be replaced by more efficient machines. He mentioned that the company's goal is to develop efficient hierarchical structures through AI model networks to accomplish tasks, envisioning a collective of AI that can connect and perform specific tasks.

Amodei explained that larger models will be able to create hundreds of smaller, faster, and more efficient models to execute various tasks. He used the analogy of worker bees supporting a queen bee, which sounds similar to typical corporate infrastructure. Amodei noted that the advantage of this structure is that end-users can easily access the specific functionalities they need through a simple user interface.

2. Hot Events

(1) Macroeconomic Environment:

l Amazon hires Covariant founding team to drive innovation in robotic AI technology

Amazon (AMZN) announced on Friday evening that it has hired Covariant founders Pieter Abbeel, Peter Chen, and Rocky Duan, along with about a quarter of the startup's employees, and signed a non-exclusive license to use Covariant's robotic foundational models. Covariant is building a large AI model for robotic language, focusing on common tasks performed by robotic arms in warehouses, such as box picking. Joseph Quinlivan, Vice President of Amazon Logistics Technology and Robotics, stated that this collaboration will advance fundamental research and integrate Covariant's AI technology into the existing robotic fleet, enhancing its performance and creating value for customers. This deal is similar to Amazon's hiring of the founders of AI startup Adept in June, indicating that the tech giant is leveraging hiring and licensing agreements to acquire new talent and technology amid antitrust scrutiny.

Covariant will continue to operate under the leadership of Ted Stinson and Zhang Tianhao, with Stinson serving as CEO, stating that the company remains committed to bringing Covariant Brain into production environments across various industries, including apparel, health and beauty, groceries, and pharmaceuticals.

(2) Web3 Sector:

l Polymarket trading volume surpasses $460 million, exceeding total on-chain NFT volume

According to data from The Block and CryptoSlam, Polymarket's trading volume over the past month has exceeded the total trading volume of all on-chain NFTs: NFT trading volume in the past 30 days was only $377 million, while Polymarket's trading volume reached $463 million. As the 2024 presidential election approaches, the number of active traders on Polymarket has steadily increased since May.

Currently, the prediction market shows that Trump has a slight edge over Harris with a 50% probability of winning the 2024 presidential election compared to Harris's 48%. The betting volume related to this event is approaching $770 million. This reflects Polymarket's position as a leading prediction market platform, attracting more participants by providing an environment for users to trade on topics that have yet to reach a conclusion.

3. Hot Narratives

Since EigenLayer sparked a wave of Ethereum re-staking, the concept of "re-staking" has gradually expanded to platforms like Solana and Bitcoin within the blockchain ecosystem. This trend reflects a growing demand for deeper exploration and application of blockchain technology. Bitcoin, as a giant in the blockchain economy, has surpassed a market capitalization of $1 trillion, and the ecosystem surrounding its staking and re-staking is accelerating, giving rise to new business models and investment opportunities.

In this context, the Bitcoin re-staking platform SatLayer has emerged. Recently, the platform successfully completed an $8 million Pre-Seed funding round, attracting the attention of well-known investment firms such as Hack VC and Castle Island Ventures.

What sets SatLayer apart is that it is a Bitcoin re-staking platform built on Babylon, allowing Bitcoin stakers to use BTC for validation services, thereby providing security for decentralized applications and protocols. Unlike Ethereum's EigenLayer, SatLayer focuses on the characteristics of the Bitcoin ecosystem, leveraging Bitcoin's security to enhance the reliability of other decentralized applications. This innovative architectural design enables multiple participants, including re-stakers, operators, and Bitcoin validation services (BSV), to collaborate within a relatively simple ecosystem.

SatLayer not only provides additional yield opportunities for staked BTC but also enhances the security of BSV and may expand its functionality. Users can participate in the re-staking process and earn rewards simply by depositing liquid staking tokens.

However, SatLayer's success is not coincidental. Its rise is closely tied to the overall development of the Bitcoin ecosystem. As Bitcoin technology solutions continue to expand and various Layer 2 solutions are introduced, Bitcoin is evolving from merely a store of value to a foundational asset for decentralized finance (DeFi) and other applications. This transition provides SatLayer with ample market space and development opportunities.

Although SatLayer has not yet confirmed whether it will launch a token, its operational team stated that it will continue to focus on bringing its technology into production environments across various industries. As market acceptance of re-staking mechanisms increases, SatLayer may play an increasingly important role in the Bitcoin ecosystem, driving innovation and development across the industry.

4. Potential Catalysts

CryptoQuant analyst Grizzly pointed out that historical data from the past decade shows that the Bitcoin Puell Multiple index in the range of 0.6 to 0.8 is referred to as the "Decision Zone."

When the index falls below the threshold of 0.6, it is typically seen as an ideal time for a dollar-cost averaging (DCA) strategy. Conversely, breaking above the 0.8 level is often associated with bullish market behavior and frequently pushes Bitcoin prices to new historical highs.

Currently, the Puell Multiple index is fluctuating between these two critical levels. If historical patterns continue to hold, a bearish scenario where the index drops below 0.6 may once again present favorable buying opportunities for investors.

II. Attention Value - Hot Projects

1. Social Media Highlights

Solana has recently gained widespread attention on social media platforms, with its popularity continuing to rise. The Solana ecosystem has developed rapidly in recent years, becoming one of the major players in the cryptocurrency market. As of 2024, Solana's TVL has reached approximately $4.8 billion, a 20-fold increase from 2023, with the daily active addresses on the Solana network reaching 1.3 million and monthly active addresses exceeding 15.6 million, showing significant growth compared to 2023. In the second quarter, Solana's total economic value increased by 53% quarter-over-quarter, reaching $151 million, demonstrating its continued activity in the cryptocurrency market. These data indicate that the Solana ecosystem is exhibiting strong growth momentum in 2024, attracting more developers and investors.

Key Projects:

· BULLISH

Bullish is about to launch its mainnet, which may positively impact its price. Recently, KOLs have been discussing its future development, and Bullish is expected to see a significant surge with the upcoming major updates, creating a positive market sentiment.

· EARLY

The most noteworthy aspect of Early Risers is the upcoming Rocket Rewards program. Recently, the sentiment around Early Risers has been optimistic, with market sentiment being positive. The most noteworthy point is that Early Risers allows investors to participate early and earn trading fee revenue, addressing the pain points of early cryptocurrency investment.

2. Smart Money Accumulation

· Smart Money Holdings

Source: ChainEDGE, Dot Labs

Project Overview:

1. YIELD (@yieldstone /X)

Yieldstone is an on-chain alternative asset management company that has pioneered the first real estate investment DAO (REID). YieldStone utilizes blockchain technology to provide access to complex real estate investment tools. Operating in the form of a DAO, it combines the best qualities of two lucrative models: Real Estate Investment Trusts (REITs) and Private Equity Real Estate (PERE) funds, bringing them on-chain for the first time. By strategically acquiring a globally diversified real estate portfolio through the DAO, it enhances the predictability of returns.

2. SYNK (@Synk_ws/X)

SYNK is a secure, Web3 cloud-based operating system that is still in its early stages. Synk operates similarly to traditional operating systems like Windows, Ubuntu, Chrome OS, and Android, but with unique functionalities. This configuration allows for secure access anytime and anywhere, maximizing security and user autonomy through decentralized technology. Synk provides the most secure working environment. Every application accessed through Synk undergoes rigorous verification, making it akin to a digital vault, and also facilitates interaction with various applications, creating a secure yet adaptable ecosystem.

· Smart Money Inflows

Source: ChainEDGE, Dot Labs

Project Overview:

1. CAT (@SimonsCatMeme /X)

$CAT is a game token based on the BNB Smart Chain, primarily used in the Simon's Cat game ecosystem. The project advocates "one cat, billions of owners," proposing that every transaction provides food for hungry cats around the world. On August 26 of this year, the Meme coin Simon's Cat (CAT) team announced on its social platform that it had completed a liquidity lock for CAT tokens worth $15 million. This lock was executed using the Floki FiLocker protocol, with a lock period set for 69 billion years and 420 million years. Recently, the most noteworthy aspect of Simon's Cat is that CZ is about to return to the BSC chain, which will boost activity on the BSC chain.

2. CLOUD (@sanctumso /X)

Infinity is a multi-LST liquidity pool, the only liquidity pool that can natively support millions of different LSTs. Since all LSTs can be converted into staking accounts, the fair price of each LST can be calculated by viewing the SOL contained in the staking account. Infinity will set a target allocation for each LST, aiming to maximize trading returns while providing a minimum for each LST. The mining pool maintains its target allocation by dynamically adjusting the swap fees for each LST. INF itself is an LST, allowing it to be directly used by DeFi protocols. The number of LSTs that Infinity can support is unlimited, which explains its name.

III. Attention Value - Sector Rotation

1. Hot Sectors

Source: Dune, Dot Labs

Source: Dune, Dot Labs

2. Internal Sector

Source: Dune, Dot Labs