Which tracks are worth paying attention to in the wave of Web3.0 applications?
The development of various applications is increasingly close to users' lives, able to solve people's practical needs, which reflects the ability of a project or platform to continuously create value.
With the development of the internet and blockchain, a new application paradigm of the Web3.0 era is emerging. Various DApps based on blockchain smart contracts have touched on all aspects, especially in the financial sector. Are the currently popular DeFi applications a bubble or a valuable Lego? Which tracks are worth investors' attention? Here, I would like to share some thoughts on the current hot tracks based on this topic.
DeFi Applications
DeFi applications are directly aimed at participants in the blockchain ecosystem, so the value of DeFi is driven by users' demand for asset appreciation management. Taking Uniswap as an example, it solves the liquidity problem of assets through AMM, providing users with a platform for quick asset exchange, addressing the need for asset circulation, and bringing great convenience to both projects and users. Of course, throughout the development of DeFi, various other DeFi applications have also emerged.
Typical projects: Uniswap, Balancer, Curve, Compound, etc.
NFT Applications
NFTs are also a hot topic currently, and their application scenarios are very broad. They can be used for various virtual assets, physical assets, important certificates, electronic documents, virtual character rights management, and more. Currently, NFT projects are mainly divided into two types: those that use NFTs as vertical domain applications and NFT trading platforms. If NFTs have a wide range of use cases, then the NFT trading market is undoubtedly a very valuable sector.
Typical projects: Opensea, BakeSwap, etc.
Underlying Infrastructure
With the development of various DApp applications, the infrastructure is also facing new challenges, and many issues with Ethereum have not been well resolved. For example, regarding gas fees, if I want to purchase a $10 crypto NFT asset, the transaction fee might be $20. This significantly hinders the liquidity of NFT assets, and Ethereum's upgrade process is relatively slow. Therefore, there are a few infrastructure aspects that must be focused on: one is exchange public chains, and the other is Layer 2. These two carry a large number of ecological applications and capital overflow from Ethereum, and there will be significant development space in the future.
Typical projects: BSC, Heco, OKExChain, Matic, etc.
Wallets & Cross-Chain
Wallets are the user entry points for Web3.0 applications, and undoubtedly, the user base is very large, with wallet users being a very precise demographic. Taking Metamask as an example, just the plugin version alone has over 4 million installations in the Google market. Additionally, in the cross-chain field, as the market has formed a prosperous multi-chain ecosystem, the demand for assets to traverse various chains and participate in various DApp applications is growing.
Typical projects: Metamask, TokenPocket, Nabox, etc.
Conclusion:
In summary, the development of various applications is increasingly close to users' lives and can solve people's actual needs. This is the direction we, as investors, should focus on supporting, and it reflects a project's or platform's ability to continuously create value. If a project relies solely on capital speculation, once the tide recedes, most people will be left exposed. Let’s explore sustainable Web3.0 application tracks together; these may all be good choices.
