Biteye’s Outlook for 2024: BTC Ecology/Modular Blockchain/DA/DePIN/New Public Chains and More

NFT, through playing games or staking Realms, can earn the token $Lords. The game is not fully open yet.
2. Loot Survivor (a text-based Roguelike game) and Shoshin by Topology have been launched on the mainnet and can be tested on the testnet. Playing the game requires at least 25 $Lords.
Non-full-chain games refer to games where some game assets are on the chain. Currently, most NFT-related games fall into this category.
Although the NFT market has been cold this year, NFTs in the gaming sector are very hot. Analyzing a project generally involves three aspects:
1. Technology
2. Operation (breadth)
3. Community (depth)
Among them, 2 and 3 are the most important, while 1 is relatively secondary.
Projects worth paying attention to: Matr1x
Matr1x aims to build a web3 boutique game platform. The first shooting game is already available for experience, and the related community is very active. It is one of the few game products with high community enthusiasm and landing.
Of course, the game also faces challenges: how to attract web2 users? Because the number of web3 users is limited, and most of them only care about profits rather than the game itself, the project needs to attract web2 players to make the game more sustainable.
Matr1x’s approach is to use Douyin, Bilibili live streaming, and hold esports competitions. From the game data, their web2 player base 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 testing
If the GameFi trend arrives, non-full-chain games will be the first to attract attention. When the entire ecosystem’s capital overflows, full-chain games will be brought up.
According to a report from Binance Research, in 2023, the financing growth of Web3 projects related to artificial intelligence is strong, reaching $298 million, surpassing the total financing amount of AI-related projects from 2016 to 2022.
At the same time, AI-related tokens outperformed BTC and ETH overall in 2023. 2023 can be regarded as the AI year of the world as AI’s importance in the Web2 world gradually strengthens. We should also consider how AI and blockchain can be combined and what directions the combination can take, and which projects we can pay attention to.
With the increasing demand for AI models, whether it is large language models or AI models customized for specific scenarios, the intelligence improvement of AI cannot be separated from a fundamental aspect.
Extensive training, and the essence behind extensive training is computational power. In traditional large-scale model training, the training environment for large models is conducted in centralized data centers using high-performance computing equipment as a cluster, connected through high-speed networks to share computing tasks.
In the Crypto environment, by sharing computing power and idle bandwidth, more computing power can be provided for AI model training. This is one of the directions in which AI&Crypto are combined.
The decentralized mechanism of Web3 allows AI to become more democratic from the most fundamental level. By deploying, training, and using AI in a decentralized manner, users’ data privacy can be better protected, and there is an opportunity to receive rewards by sharing data.
However, it should be noted that for model training in decentralized computing networks, due to the distributed distance, there is a defect of communication delay, and nodes need to spend more time waiting for data transmission. This is less suitable for models that pursue training efficiency.
In Web2, well-known AI applications include chatbot ChatGPT, AI search engine New Bing, image generation tool Midjourney, and virtual character AI, among others. In Crypto, if AI wants to integrate with Crypto at the application level, it can develop in the following directions:
1) Similar to RSS3, based on the ChatGPT model, incorporate on-chain data and data sources like Twitter, Reddit, Lens, Farcaster, Mastodon, etc., to build a more Crypto-native chatbot or AI assistant that caters to the needs of Crypto players.
Or, like 0xScope, build an AI cognitive model based on a knowledge graph, and users can use the AI trading assistant Scopechat to obtain and understand on-chain data for investment and trading analysis.
2) In addition, generative AI can also bring new narratives to Web3 applications, such as embedding virtual people, character AI, and other cutting-edge elements in games and social ecosystems to develop new gameplay.
From the recent projects launched by Binance, it is not difficult to see that the largest global exchange is very optimistic about the future of AI in the Crypto field. The two projects launched are AI image generation and AI virtual idols, which are explorations of AI’s integration in the Crypto field.
In addition to the mentioned projects, other projects worth paying attention to include:
1) Bittensor ($TAO): A decentralized machine learning network based on blockchain that coordinates the collaboration of AI models through blockchain and mining incentive mechanisms.
2) FetchAI ($FET): A blockchain-based machine learning platform aimed at allowing traditional products to access AI through Fetch.ai tokens without changing the underlying business applications.
3) Dynex ($DNX): A blockchain-based neural-morphic supercomputing blockchain based on the DynexSolve chip algorithm. It proposes a useful Proof-of-Useful-Work (PoUW) method to improve the speed and efficiency of decentralized networks, aiming to provide computing power for machine learning, fintech, biopharmaceuticals, etc.
4) Grass: A decentralized incentivized network that fetches networks. Users sell their unused network resources to companies, labs, and other institutions through Wynd Network. The buyer companies of Grass seek unused network resources to access more diverse IP addresses for market research or tasks such as network crawling and AI training.
5) Clore.ai ($CLORE): A platform that provides GPU computing power rental services based on PoW. Users can rent their GPUs for tasks such as AI training, video rendering, and cryptocurrency mining, and provide them to individuals and institutions in need of computing services.
To deeply participate in the above projects, the main methods are renting computing power or mining. For example, Grass currently has an open Chrome plugin account for computers, where users can download and register to earn points by hanging on WiFi, which can be exchanged for tokens after the project issues its tokens.
(Note: Currently, most AI&Crypto projects are in the exploration stage, with projects focusing on different application scenarios. However, whether these projects have real demand needs to be carefully discerned.)
The Meme sector, as a unique branch in 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 counter-cultural phenomenon (Doge, RFD).
A Meme can also be “arbitrage” of liquidity overflow (Aidoge, Stark Inu, which is expected to airdrop on Starknet).
The characteristic of this sector is that it does not rely on traditional business models or specific technical applications but on community consensus and cultural attributes. The value of Meme tokens largely depends on community recognition and emotional connection rather than traditional asset valuation models.
From $PEPE rising in the bear market, to $BITCOIN with strong memetic attributes, to $BONK entering bull market, and $Silly recommended by the founder of Solana, we can see that strong Meme coins often have the following characteristics:
1. Cultural resonance and community-driven
Meme coins in this sector are usually combined with popular internet culture. For example, Dogecoin ($DOGE) and Shiba Inu coin ($SHIB) originated from popular internet memes or cultural symbols.
This cultural resonance is easy to spread in internet communities, attracting a large number of followers and supporters, and generating lively discussions on social media, increasing the visibility and attractiveness of these tokens.
2. Social media and celebrity effect
Social media has a huge influence on Meme coins, and endorsements from celebrities like the founder of Solana can significantly boost their market value. This celebrity effect and the power of social media can greatly enhance the visibility of a token and create FOMO among investors in a short period.
3. News coverage and media attention
Due to their unique image and sometimes bizarre stories, Meme coins often become the focus of news coverage, further increasing public attention to these tokens.
Regarding Meme, one important point to consider is how to judge the consensus strength of a Meme, that is, how many people in the market are willing to buy into a Meme.
In the early stages of a Meme, we can only judge its investment value based on vague criteria such as community activity, IP concepts (riding on trends), and the strength and cultural background of the project team. This is the biggest risk when investing in Meme in the early stages, either going to zero or being a rug pull.
When a Meme successfully “survives” for a period of time, we can try to judge whether it is worth investing in based on factors such as the number of holders, trading volume, and support from the candlestick chart (for example, more people mentioning the Meme on Twitter).
As Meme becomes more widely known, its consensus strengthens, and the risks of going to zero or rug pulls gradually decrease. However, the returns of Meme at this stage are discounted. As they say, risks and returns coexist.
Overall, the Meme sector represents a new direction of diversification and cultural integration in the cryptocurrency market. It is not only 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 ignored.
Therefore, for ordinary investors, understanding the cultural attributes of Meme coins, getting early chips, and most importantly, cultivating their own familiar logic and judgment, and taking action, are key to participating in the Meme sector.
Finally, 2023 is a year of transformation and innovation in the blockchain and cryptocurrency field. From the launch of the first modular blockchain to the rise of the BTC metaverse, to the integration of AI and cryptocurrency, each step injects new vitality into the industry.
As we step into 2024, we believe that these developments will continue to influence the industry’s trajectory. Stay focused and keep learning, analyze market dynamics rationally, explore new tracks, and it may be one of the compulsory courses for everyone in 2024.
In 2024, Biteye will stay true to its original aspiration, continue to select high-quality projects, and explore the codes of wealth with our team!
Biteye is Asia’s leading Web3 research community that generates forward-looking investment research content and tools through community and AI-driven methods, helping community members explore the Web3 rabbit hole.
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Further reading:
Which airdrops have earned the most in recent years? TIA, JTO, BONK have created huge value
Celestia (TIA) mainnet launch | Opportunities and challenges for the future of modular blockchains