On-chain coins are hot, can the coins in the exchange keep up with the pace?

Recently, the cryptocurrency market has shown a trend of diversified development, with Bitcoin's market share dropping from 60% to 55%, marking the arrival of the altcoin season. Market hotspots are emerging one after another, truly a bloom of a hundred flowers. The field of Artificial Intelligence Agents (AI Agent) has attracted attention first, with a certain protocol's market capitalization briefly exceeding $300 million. In the Solana ecosystem, a particular project also saw its market cap surpass $1 billion. The increase of a certain ecological coin even exceeded 10 times. In terms of products, the open interest on the exchange has reached new highs, surpassing $4.3 billion. Even the NFT sector, which was once overlooked by the market, has shown some activity, with multiple platforms issuing tokens, driving up many blue-chip NFT projects on Ethereum and Solana.

By simply sorting through the hotspots of various sectors, it is not difficult to find that these hotspots are mainly concentrated on-chain. So, have the tokens in centralized exchanges really been forgotten by the market?

In fact, it is not the case. There is another narrative in this round of bull market that cannot be ignored: Trump may be elected. This means that cryptocurrency will officially enter the public eye. The improvement of regulations and the relaxation of supervision will help external funds enter the cryptocurrency field. The continuous net inflow of funds into Bitcoin and Ethereum spot ETFs confirms this. The Trump family's cryptocurrency project also leads by example, having made significant purchases of DeFi-related coins within a month, including ETH, CBBTC, AAVE, LINK, ENA, and ONDO.

So, how do these coins perform after being purchased? What common characteristics do they share? Are there any conceptual coins worth paying attention to? Let's analyze them together.

Purchase Record Summary

As of November 30, the project has spent a total of $44.75 million to purchase cryptocurrencies. As of December 18, all held coins are in a profitable state.

Interestingly, unlike traditional institutions that focus more on Bitcoin, the amount of ETH held by this project far exceeds that of Bitcoin, which may indicate a higher level of optimism regarding the future price trend of Ethereum.

AAVE, as the leader in the lending market, holds the top position in TVL among all protocols, with a deposit scale nearing 40 billion dollars, reaching a historical high. In the past seven days, its coin price has increased by 35%. Additionally, the project's community has submitted a proposal in collaboration with AAVE, which is currently undergoing a temporary review phase at AaveDAO. If the proposal is approved, it will bring new users and more actual benefits to AAVE.

LINK is a well-established oracle project. On November 14, the project announced that it would adopt Chainlink as the standard for on-chain data and cross-chain connectivity, to safely drive the next phase of large-scale adoption for DeFi.

The development of ENA is closely related to the current bull market. As the yield of USDe comes from arbitrage between spot and futures, the more enthusiastic the market sentiment, the higher the Ethereum funding rate, and Ethena can benefit from it. Recently, its TVL has surpassed 6 billion USD, setting a new historical high. In terms of products, they have also partnered with a major asset management giant to launch the RWA stablecoin USDtb, which is backed by government bonds as a source of yield, addressing market concerns that a negative funding rate could lead the overall protocol into a death spiral.

ONDO is the leader in the current RWA sector. After a major asset management giant announced the launch of the BUIDL fund, Ondo Finance invested over $95 million, becoming the largest holder. Whether in terms of compliance, legitimacy, capital scale, or market favorability, ONDO is the best choice in the current RWA sector.

In addition to the above-mentioned coins, it is worth mentioning COW. This project only used the Cow Protocol for transactions when purchasing the above coins, so COW is also regarded as a related concept coin.

Future Coins to Pay Attention To

Based on the investment strategy of this project, we can infer the targets they may focus on next.

First of all, the ideal situation is that the token itself has a partnership with the project, such as AAVE and LINK. Secondly, projects with a "clear business model" and "stable real returns" are preferred. AAVE, LINK, ENA, ONDO, etc. all have clear product positioning, a large ecosystem of users, and actual revenue models. This indicates that they do not blindly pursue "novelty" or "pure concept" tokens, but are more inclined to invest in protocols that can bring long-term value.

LDO: Given that the project's holdings of ETH are significantly higher than those of BTC, it is evident that they have a very optimistic view of Ethereum's long-term potential. With the maturation of Ethereum's staking mechanism, coupled with the potential introduction of ETF-based Ethereum staking yields, LIDO, as the leading protocol, may become the preferred choice. It is the largest liquid staking protocol in the Ethereum ecosystem, with a TVL of $37 billion, accounting for 30% of the entire Ethereum staking market.

Pendle: Primarily focuses on the yield splitting market, allowing users to trade future yield rights. As the staking rates of Ethereum and the yields of protocols like USDe rise, the demand for yield trading markets continues to increase, making Pendle highly regarded in this bull market. Recently, Pendle's TVL has surpassed $5 billion and has established partnerships with several mainstream DeFi protocols.

UNI: A certain DEX is the beginning of DeFi Summer and is currently the most commonly used decentralized exchange by users, leading in this sector. Recently, they launched a new product, and although the market reaction has been lukewarm, it does not affect users' reliance on their products.

Conclusion: The Importance of Blue-Chip Projects

Regarding the situation where the project is making large purchases of cryptocurrencies, an analyst from a data analysis platform stated to the media: "This buying behavior may be aimed at gaining more trust or promoting the development of its own project by drawing attention to these assets. Because if these assets perform well, the project may also benefit from it."

The project actively lays out blue-chip projects, which not only enhances market confidence in mainstream DeFi protocols but also injects more institutional funds into the crypto market. This flow of funds further stabilizes the market and drives mainstream projects toward higher market value and development potential.