On-chain trading is heating up, can exchange tokens rise with the trend?

Recently, the cryptocurrency market has shown a trend of diversification, with Bitcoin's market share dropping from 60% to 55%, marking the arrival of the altcoin season. Market hotspots continue to emerge, with impressive performances across various sectors:

AI Agent related projects have performed remarkably, with a certain protocol's market cap once surpassing 300 million USD. An AI project within a certain public chain ecosystem had a peak market cap exceeding 1 billion USD, while the coins in a certain exchange's ecosystem saw a rise of over 10 times. In terms of products, the open interest on the exchange has repeatedly hit new highs, breaking through 4.3 billion USD. Even the NFT sector, which was once overlooked by the market, has seen some movement, with multiple well-known NFT projects successively issuing tokens, driving up many blue-chip NFT projects within the Ethereum and Solana ecosystems.

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

The reality is different. There is another narrative in this 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 are both favorable for external funds to enter the cryptocurrency market. This can be seen from the continuous net inflow of funds into Bitcoin and Ethereum spot ETFs. The Trump family's cryptocurrency project World Liberty Financial also supports this with concrete actions, having purchased a large amount of DeFi-related tokens within a month, including: ETH, CBBTC, AAVE, LINK, ENA, ONDO.

So, after World Liberty Financial purchased these Tokens, how did their price perform? What common characteristics do these Tokens have? What other related concept coins are there? Let's analyze them together.

Purchase History Overview

Starting from November 30, World Liberty Financial invested a total of $44.75 million to purchase cryptocurrencies. As of December 18, all the coins it holds are in a profitable state.

Interestingly, compared to traditional institutions, the amount of Ethereum held by World Liberty Financial far exceeds that of Bitcoin, which may indicate their more optimistic outlook on the future of Ethereum.

AAVE, as the leader in the lending market, holds the first position in TVL among all protocols, with a deposit size close to $40 billion, reaching an all-time high. In the past 7 days, the price of AAVE has risen by 35%. The World Liberty Financial community has proposed a collaboration with AAVE, which is currently in the TEMP CHECK phase at AaveDAO. If the proposal is ultimately approved, it will bring new users and more real benefits to AAVE.

LINK is a well-known oracle project. On November 14, World Liberty Financial announced that it will adopt Chainlink as the standard for on-chain data and cross-chain connectivity to drive the mass adoption of DeFi.

The development of ENA is closely related to this round of bull market. As its earnings come from arbitrage between futures and spot, the higher the market sentiment rises, the higher the Ethereum funding rate, and Ethena can benefit from this. Recently, its TVL has surpassed 6 billion USD, reaching an all-time high. In terms of products, they have also partnered with a major asset management giant to launch the RWA stablecoin USDtb based on government bond yields, which has alleviated concerns in the market about the possibility of funding rates turning negative and leading the 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 it is compliance, legitimacy, capital scale, or market recognition, ONDO is the best choice in the current RWA sector.

It is worth mentioning COW. World Liberty Financial purchased the above coins through a certain protocol, so COW is also regarded as a Trump concept coin.

Possible Investment Directions in the Future

According to the investment strategy of World Liberty Financial, we can speculate on the targets they may focus on next.

First, they tend to choose tokens that have partnerships with World Liberty Financial, such as AAVE and LINK. Secondly, they value "clear business models" and "stable real returns." AAVE, LINK, ENA, ONDO, and others have clear product positioning, a large ecosystem of users, 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 World Liberty Financial's holdings in ETH far exceed those in BTC, it is evident that they are very optimistic about Ethereum's long-term potential. As the Ethereum staking mechanism matures, coupled with the possibility of ETFs introducing Ethereum staking yields, a certain liquid staking protocol, being the current leader, may become the preferred choice. This protocol is the largest liquid staking protocol in the Ethereum ecosystem, with a TVL of 37 billion dollars, accounting for 30% of the entire Ethereum staking market.

Pendle: Primarily focused 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, drawing significant market attention to Pendle in this bull market. Recently, Pendle's TVL has surpassed $5 billion and has established partnerships with several major DeFi protocols.

UNI: A certain DEX marks the beginning of DeFi Summer and is currently the most commonly used decentralized exchange, leading in this sector. Recently, they launched a new cross-chain solution, and although the market response has been tepid, this does not affect users' reliance on their products.

Conclusion: Blue-chip projects become investment hotspots

Regarding World Liberty Financial's large-scale purchase of cryptocurrencies, an analyst from a certain analysis platform stated to a media outlet: "World Liberty Financial's purchase of Tokens may be aimed at gaining more trust, or to promote the development of its own project by attracting attention to these assets. Because if these assets perform well, World Liberty Financial may also benefit from it."

World Liberty Financial is 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 flow further stabilizes the market and drives mainstream projects towards higher market value and development potential.