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Degen Score summarizes the top ten narratives and investment opportunities in the 2023 cryptocurrency market.

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Degen Score summarizes the top ten narratives and investment opportunities in the 2023 cryptocurrency market.

The data platform Degen Score member korpi, after reviewing multiple cryptocurrency reports, has listed the top ten sectors and related investment opportunities for 2023. He mentioned that although investing early in hot projects is the simplest way to earn excess returns, the challenging part is to select and identify the correct projects.

The following content is compiled from korpi on Twitter. For more details and discussions, please refer to the original link.

1. ETH Unlock

Ethereum is expected to launch the ETH staking withdrawal feature in Shanghai upgrade. Korpi believes this event will "de-risk" the process, encouraging higher staking participation without the worry of locked funds for too long. This will also intensify competition among liquidity staking protocols.

He mentioned major staking protocols and believes that RPL's long-term trend will outperform ETH.

2. EIP-4844 Upgrade

Previously reported, the EIP-4844 proto-danksharding upgrade will further enhance Ethereum's scalability, with Vitalik noting it as the first significant step in reducing L2 fees.

Korpi believes this will unlock many new applications for major L2 projects, rendering the low fees pitch of Ethereum killers less effective. Undoubtedly, the next blue-chip project will likely emerge on L2:

Korpi seems to favor Arbitrum due to its higher development and activity levels.

3. EigenLayer

The secondary staking solution EigenLayer allows users to stake ETH while also using it to support other applications and access related services.

There is currently no information on the EIGEN token, but Korpi believes that almost every project will eventually issue tokens, so staying updated is crucial. He also retweeted expert olimpio's tweet on EIGEN.

4. zkEVM

zkEVM encompasses ZK rollup scaling technology compatible with Ethereum's EVM, meaning all EVM-compatible projects can seamlessly transition to zkEVM, further reducing development costs.

Many teams are actively developing zkEVM:

Korpi noted that the mentioned projects are highly valued in fundraising, suggesting potentially significant airdrop value. He recommends active participation in testnets, Discord, and providing feedback.

zkEVM analysis tweet

5. Layer 3

L3 is a specific application chain built on top of L2, allowing development for specific purposes and applications. Korpi believes this trend will pose strong competition for Cosmos.

He speculates that Perpetual Protocol and Uniswap may choose to deploy on L3.

Application chain-related tweet

6. Account Abstraction

Account Abstraction, AA, transforms each account into a self-logic smart contract, unlocking many previously impossible applications such as social recovery wallets, 2FA verification, and batch transactions. Korpi points out that due to the significant improvement in user experience, Account Abstraction has the potential to attract a new wave of blockchain users.

Related projects:

  • StarkWare: zkRollup with built-in Account Abstraction

  • zkSync: zkEVM with built-in Account Abstraction

  • Argent: Based on zkSync, user-friendly crypto wallet, not yet launched

Account Abstraction related tweet

7. Modular Blockchain

L1 public chains currently handle various tasks like settlement, execution, and data availability, leading to the blockchain trilemma. However, modular blockchain architecture allows for scaling by splitting the application layer and execution layer without sacrificing decentralization.

Related projects:

Korpi also mentioned potential airdrop opportunities.

8. Whole Chain Concept

Cross-chain bridges and Wrapped Assets have security concerns, and Korpi believes the future lies in Whole Chain. Using LayerZero technology, encrypted assets can be transferred without cross-chain bridges, offering:

  • Higher security

  • More composability

  • New DeFi applications

Analysis tweet

LayerZero has been adopted by many protocols:

LayerZero has not launched yet, potential airdrop analysis

9. New DeFi Primitives

In the 2021 bull market, Korpi mentioned that many new projects were Ponzi schemes with no innovation, while truly technical projects emerged during the bull market:

Related tweet

10. NFT Fi

As a new asset class emerges, it needs its own financial ecosystem. Korpi believes that the DeFi NFTFi in the NFT field has started to develop: