On-chain Token popularity is rising, can the coins in the exchange welcome a pump in the market?

Recently, the cryptocurrency market has shown a trend of diversification, with Bitcoin's market share dropping from 60% to 55%, marking the beginning of the altcoin market. Market hotspots emerge frequently, showcasing a variety of developments: AI Agent related projects are performing exceptionally well, with the market capitalization of a certain protocol once exceeding 300 million USD; a specific public chain ecosystem project reached a maximum market capitalization of over 1 billion USD; and the price of a certain ecological coin has risen over 10 times. In terms of products, the open interest on trading platforms has also reached new highs, surpassing 4.3 billion USD. Even the NFT sector, which was once neglected by the market, has shown some activity, as several well-known projects have issued tokens, driving up the prices of many blue-chip NFT projects under the ETH/SOL ecosystem.

From these hotspots, it can be seen that the market's attention is mainly focused on on-chain projects. So, have the tokens within 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: a former politician may be elected again. This means that cryptocurrencies will further enter the public eye. The improvement of regulations and the relaxation of supervision are conducive to external funds entering the cryptocurrency market. This can be evidenced by the continuous net inflow of funds into Bitcoin and Ethereum spot ETFs. Moreover, the cryptocurrency projects related to that political family have also shown support through concrete actions, purchasing a large number of DeFi-related Tokens within a month, including: ETH, CBBTC, AAVE, LINK, ENA, ONDO, etc.

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

Purchase Record Overview

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

It is worth noting that, unlike traditional institutions that prefer Bitcoin, the amount of ETH held by this project far exceeds that of Bitcoin, which may indicate their more optimistic outlook on the future price trend of Ethereum.

AAVE, as the leader in the lending market, ranks first in TVL with a deposit scale close to $40 billion, setting an all-time high. Recently, the coin price has risen by 35% within seven days. The project's community has also approved a proposal to collaborate with AAVE, which is currently under review by AaveDAO. If approved, it will bring new users and more real benefits to AAVE.

LINK is a well-known oracle project, and this crypto project has also announced that it will use Chainlink as the standard for on-chain data and cross-chain connections, safely driving DeFi into the next stage of large-scale application.

The development of ENA is closely related to the current bull market. As its revenue comes from futures arbitrage, the more positive the market sentiment and the higher the Ethereum funding rate, the more revenue the project can generate. Recently, its TVL surpassed $6 billion, setting a new historical high. In terms of products, they have also collaborated with a major asset management firm to launch a real asset-backed stablecoin USDtb, with revenue sourced from government bonds, which alleviates market concerns about the potential negative funding rate leading to a death spiral for the protocol.

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

In addition to the above-mentioned coins, COW is also worth paying attention to. This project only used Cow Protocol when purchasing these tokens, so COW is also regarded as a related concept token.

Coins to Watch in the Future

Based on the investment logic of the project, we can speculate on the targets they may focus on next.

The first choice is tokens that have a partnership with the project, such as AAVE and LINK. The second is projects with a "clear business model" and "stable actual returns." AAVE, LINK, ENA, ONDO, etc. have clear product positioning, a large ecological user base, and actual revenue models. This indicates that they are more inclined to invest in protocols that can bring long-term value, rather than blindly pursuing "novelty" or "pure concept" tokens.

LDO: Given that the project's holdings of ETH are significantly higher than those of BTC, it is clear that they are very optimistic about Ethereum's long-term potential. With the maturation of Ethereum's staking mechanism and the possible introduction of ETF that may bring Ethereum staking yields, the leading protocol LIDO 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 split market, allowing users to trade future yield rights. With the rise in Ethereum staking rates and the yields of protocols like USDe, the demand for yield trading markets continues to increase, drawing significant attention to Pendle during 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 pioneer of DeFi Summer and is currently the most commonly used decentralized exchange, leading in this sector. Recently, they launched a new product, and although the market response has been tepid, it does not affect users' reliance on their products.

Summary: Blue-chip projects become the focus

Regarding the large-scale purchase of tokens by this crypto project, an analyst stated to the media: "This may be to gain more trust, or to promote 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 the market's confidence in mainstream DeFi protocols but also injects more institutional funds into the crypto market. This flow of funds further stabilizes the market and propels mainstream projects towards higher market value and development potential.