Exploring the On-chain Boom: Can Exchange Tokens Rise in Sync?

Recently, the cryptocurrency market has shown a diversification of hot spots, with Bitcoin's market share dropping from 60% to 55%, indicating the arrival of altcoin season. Various sectors are demonstrating active trends: AI-related projects like Virtuals Protocol saw its market capitalization briefly exceed $300 million, while the ai16z project within a certain ecosystem also once surpassed $1 billion in market cap. The rise of a certain ecological coin HYPE has even exceeded 10 times. In terms of trading, open interest has repeatedly hit new highs, breaking through $4.3 billion. Even the NFT sector, which was once neglected by the market, has shown movement, with several well-known projects issuing tokens, driving up the related blue-chip NFT projects.

These hotspots mainly focus on on-chain projects, so have the tokens of centralized exchanges really been forgotten by the market? The truth is not so. There is another potential factor in the current bull market that cannot be ignored: a certain former politician may be elected again.

This possibility means that cryptocurrencies will further enter the public eye. The improvement of regulations and moderate relaxation of supervision help attract more external funds into the cryptocurrency market. The continuous net inflow of funds into Bitcoin and Ethereum spot ETFs is a clear proof of this. At the same time, a cryptocurrency project related to a certain political family, World Liberty Financial, has also made large purchases of multiple DeFi-related Tokens, including ETH, CBBTC, AAVE, LINK, ENA, and ONDO within a month.

So, how are the purchased Tokens performing? What common characteristics do they share? What potential concept coins are worth paying attention to? Let's explore these questions together.

Purchase Record Overview

Starting from November 30, World Liberty Financial has invested a total of $44.75 million to purchase cryptocurrencies. As of December 18, all held coins are in profit.

It is worth noting that, compared to traditional institutions, World Liberty Financial holds significantly more Ethereum than Bitcoin, which may reflect their optimism about Ethereum's future performance.

The following are the main tokens they purchased and their characteristics:

• AAVE: The world's leading lending platform, ranked first in TVL, with a deposit scale approaching 40 billion USD, setting a new historical high. The coin price has risen 35% in the last seven days.
• LINK: A well-known oracle project, World Liberty Financial has announced it as the standard for on-chain data and cross-chain connectivity.
• ENA: Closely related to the current bull market, benefiting from the high funding rates brought by the soaring market sentiment. TVL has surpassed $6 billion, reaching an all-time high.
• ONDO: The current leader in the RWA track, has invested over $95 million after a large asset management company announced the launch of a related fund.

In addition, COW is also regarded as a related concept coin due to World Liberty Financial's use of a certain protocol for purchasing.

Potential Next Investment Targets

Based on the investment model of World Liberty Financial, we can speculate on the next batch of tokens they might be interested in:

1. LDO: Considering their preference for ETH, as the largest liquid staking protocol, LDO may become the preferred choice. Its TVL has reached $37 billion, accounting for 30% of the entire Ethereum staking market.

2. Pendle: Focused on the yield splitting market, its demand continues to increase as various staking and protocol yields rise. TVL has surpassed 5 billion USD and has established partnerships with multiple mainstream DeFi protocols.

3. UNI: As the leader of decentralized exchanges, Uniswap holds an irreplaceable position in the DeFi space. Although the recent launch of new products has received lukewarm responses, users still rely heavily on its core services.

Summary

World Liberty Financial's aggressive purchase of cryptocurrencies may be aimed at gaining more trust or promoting the development of its own projects. Their active layout of blue-chip projects has not only boosted market confidence in mainstream DeFi protocols but has also injected more institutional funds into the crypto market. This flow of funds has further stabilized the market and propelled mainstream projects towards higher market capitalization and development potential.