Virtual Money Market Hotspot Analysis: On-chain Tokens are Hot, Can Exchange Tokens Rise?

Recently, Bitcoin's market share in the entire cryptocurrency market has dropped from 60% to 55%, marking the beginning of the altcoin market. Currently, the market is buzzing with activity, showcasing a variety of trends. AI Agent-related projects are leading the way, with a certain protocol's market cap once exceeding $300 million. In the ecosystem of a certain public chain, the AI project's market cap also broke through $1 billion, while the token in another ecosystem surged more than 10 times. In terms of products, the open interest has repeatedly reached new highs, surpassing $4.3 billion. Even the NFT sector, which was once overlooked by the market, has shown some movement, with multiple projects issuing tokens, driving up the prices of blue-chip NFT projects on several public chains.

From the above hotspots, it can be seen that the current market attention is mainly focused on on-chain projects. So, have the tokens of centralized exchanges really been forgotten by the market?

This is not the case. There is another narrative in this bull market that cannot be ignored: Trump may be elected. This means that cryptocurrency will further enter the public eye. The improvement of regulations and the loosening of supervision are conducive to external capital entering the cryptocurrency market. The continuous net inflow of funds into Bitcoin and Ethereum spot ETFs can confirm this. The Trump family's cryptocurrency project also leads by example, having made substantial purchases of DeFi-related Tokens within a month, including ETH, CBBTC, AAVE, LINK, ENA, and ONDO.

So, how do these tokens perform after being purchased? What common features do they share? What other concept coins are worth paying attention to? Let's analyze them together.

Purchase Record Summary

Starting from November 30, the Trump family's related projects have invested a total of 44.75 million USD in purchasing cryptocurrencies. As of December 18, all held coins are in a profitable state.

Interestingly, unlike traditional institutions that focus more on Bitcoin, this project holds far more ETH than Bitcoin, which may indicate that they are more optimistic about the future trend of Ethereum.

AAVE, as the leading lending platform in the entire market, has the highest TVL among all protocols, with a deposit scale close to 40 billion USD, setting a historical high. In the last seven days, its coin price has increased by 35%. In addition, the cooperation proposal between the Trump family-related project and AAVE is currently in the community voting phase, and if approved, it will bring new users and more actual benefits to AAVE.

LINK is a well-known oracle project. On November 14, a project related to the Trump family announced that it would adopt Chainlink as the standard for on-chain data and cross-chain connectivity, using it as a secure way to drive the mass adoption of DeFi.

The development of ENA is closely related to the current bull market. As its returns come from arbitrage between futures and spot markets, the higher the market sentiment, the higher the Ethereum funding rate, and ENA will benefit more from it. Its TVL recently surpassed 6 billion USD, setting a historic high. In terms of products, they have also collaborated with a certain asset management giant to launch a RWA stablecoin based on government bond yields, which addresses market concerns that a negative funding rate could lead to a death spiral for the protocol.

ONDO is the leading project in the current RWA track. After a certain asset management giant announced the launch of related funds, ONDO invested over $95 million, becoming the largest holder. In terms of compliance, legitimacy, capital scale, and market recognition, ONDO is the best choice in the RWA track.

It is worth mentioning COW. The Trump family's related project only used a certain protocol to trade the aforementioned coins, so COW is also regarded as a related concept coin.

Tokens to Watch in the Future

Based on the investment logic related to the Trump family projects, we can speculate on the targets they may focus on next.

First, it is best to have tokens that have a partnership with the project. Secondly, there should be a "clear business model" and "stable actual returns". AAVE, LINK, ENA, ONDO, etc., all have clear product positioning, a large ecological user base, and actual revenue models. This indicates that they will 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 Trump family's related projects hold significantly more ETH than BTC, it is evident that they have a strong outlook on Ethereum's long-term potential. With the maturity of Ethereum's staking mechanism, coupled with the possibility of ETFs introducing Ethereum staking yields, a certain leading protocol has 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 focused on the yield splitting market, allowing users to trade future rights to yields. With the rise in Ethereum staking rates and the yields of protocols like USDe, the demand for yield trading has continued to increase, making Pendle a focal point in this bull market. Recently, Pendle's TVL has exceeded $5 billion and has established partnerships with several mainstream DeFi protocols.

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

Conclusion: Blue Chip Projects Become Popular Investment Targets

Regarding the Trump family's large-scale purchases of cryptocurrency related projects, an analyst from a certain analytical platform stated: "This purchasing behavior may be to gain more trust, or to promote the development of its own projects by attracting attention to these assets. Because if these assets perform well, the project may also benefit from it."

The Trump family's related projects are actively laying out blue-chip projects, which not only boosts market confidence in mainstream DeFi protocols but also injects more institutional funds into the crypto market. Such capital flows further stabilize the market and push mainstream projects towards higher market capitalization and development potential.