Author: Alvis, Mars Finance
In the crypto market over the past month, as Bitcoin broke through $69,000, VC value coins have completely turned around. The major projects have been updated frequently, as if they were holding their cards ready to be revealed, but the market saw - wow, the rise was even stronger than expected! From the release of Worldcoin's mainnet, to Uniswap's Layer 2 extension chain Unichain, to ApeCoin's launch of ApeChain and cross-chain bridges, value coins have made hard-core moves one after another. In just a few weeks, the market has seen the rise, which is even crazier than most Meme coins.
The drama of this wave of market is that everyone originally thought that Meme coins were still the protagonists, relying on hype and short-term explosive pulls to crush the market. As a result, projects such as value coins, which seem to be "slow-burning", have turned around in the solid technology and ecological landing, and VC coins have fought back and risen wildly. This operation from technical "bottoming" to price takeoff is like a silent counterattack by VC projects against Meme coins.
The glory of Meme coins is still short-lived, like a feast without soul, which returns to normal after bluffing. Value coins are gradually dominating the market with the expansion of multi-chain ecology, the substantial functions of DeFi, and the further improvement of infrastructure. Compared with hype, they rely on hard power. Is it a short-term carnival or a long-term domination? Now it seems that value coins are gradually regaining the "throne" of the market.
Why were VC coins FUDed in the past?
VC coins have suffered from FUD in the past mainly due to the following defects:
Slow delivery: Many VC-backed projects involve complex infrastructure construction and long R&D cycles. This has resulted in many projects failing to launch usable products or services in the short term despite obtaining early financing, seriously lagging behind the high expectations of the market.
Unclear business model: Even for technologically advanced projects, many VC coins still lack a clear business model. Project parties often fail to launch products and services that can bring continuous profits in a timely manner, resulting in unclear token value. For example, the token design of some VC projects cannot provide investors with a long-term value capture mechanism.
Weak token economic model: Many VC-backed project tokens only serve as handling fees in the ecosystem, and do not participate in governance or reward mechanisms. Due to limited demand, the market performance of such tokens is difficult to support high valuations, and investors are gradually losing confidence.
Reigniting VC Coins: Practicality and Long-term Value
Although VC coins face many challenges, it does not mean that they have no value. On the contrary, many VC-backed projects have demonstrated long-term potential with clear technical foundations, strong ecological support, and practical application scenarios. Here are a few aspects worth paying attention to:
Practicality and technical support: Many value coins are accompanied by strong technical innovations. For example, Uniswap's technical innovations in the DeFi field (such as the automatic market maker mechanism) have promoted the development of decentralized finance. Sui has improved transaction speed and security through the unique design of the Move language, attracting developers in the DeFi and NFT fields
Broad ecosystem: Many value coins have a wide range of application scenarios, such as multiple decentralized lending platforms in the Sui network, such as Suilend, which demonstrates its ecological expansion capabilities in the DeFi field. Similarly, ApeCoin has built a multi-chain ecosystem by launching cross-chain bridges and DeFi functions.
Long-term development potential: The real advantage of value coins lies in their long-term sustainability. For example, Uniswap's Layer 2 expansion chain Unichain is working to solve the scalability problem of the Ethereum network and enhance network security through a staking mechanism. As these projects are gradually implemented, the long-term value of VC coins will be released.
Relatively stable market: Value coins have lower volatility than Meme coins and are suitable for long-term investors. Although Meme coins can bring huge gains in the short term, their market is volatile and easily affected by emotions and market manipulation. In contrast, value coins have smaller price fluctuations and better resistance to declines due to their practical application scenarios and technical support.
The rise of value coins: analysis of 8 projects
As the market gradually returns to rationality, some technologically advanced projects are showing great potential. Here are 8 recent value coin projects worth paying attention to. Their technical foundation, ecological expansion and market performance illustrate the potential of value coins:
1. ApeCoin (APE): From Meme Coin to DeFi Bridge
Introduction: ApeCoin is a token launched by Bored Ape Yacht Club (BAYC) to support the BAYC community and its related DeFi and NFT ecosystems. With the launch of ApeChain and the cross-chain bridge, APE has gradually transformed into a key player in the multi-chain ecosystem. As the native Gas token of ApeChain, APE is providing key support for cross-chain transactions.
Current circulation: The total supply of ApeCoin is 1 billion, and there are about 753 million tokens in circulation on the market. The unlocking speed of tokens is gradually slowing down.
Price changes: In the past month, the price of ApeCoin has risen from $0.74 to $1.68, an increase of more than 127%.
Future potential analysis: ApeCoin's initial popularity stems from its cultural connection with the Bored Ape Yacht Club, but in the long run, cultural and community hype alone cannot support the steady growth of the coin price.
On October 20, ApeChain and its official cross-chain bridge announced their launch. According to market information, the first batch of meme coins in its ecosystem rose after issuance. Apecoin officials said that stablecoins that cross-chain to ApeChain will be converted into DAI and deposited into sDAI, accumulating income according to MakerDAO's savings rate. At the same time, LayerZero also announced that it has been launched on the ApeChain mainnet and has become its standardized interoperability provider.
The launch of ApeChain and the launch of the cross-chain bridge provide APE with substantial application scenarios, especially as a Gas token in the multi-chain DeFi ecosystem, which gives it a certain growth potential in the future. In addition, LayerZero's cross-chain technology allows APE to be seamlessly transferred between multiple blockchains, enhancing the practicality and liquidity of the token. Overall, the future momentum of ApeCoin's rise depends on the development of its cross-chain ecosystem and whether it can continue to launch valuable application scenarios. If the ApeChain ecosystem can continue to develop and attract more developers and projects to join, APE has great potential for growth.
2. Uniswap (UNI): The core engine of decentralized finance
Introduction: Uniswap is a leading project in the DeFi field. It adopts the automatic market maker (AMM) model, which greatly simplifies the process of decentralized transactions. Uniswap's technological innovations, such as liquidity aggregators and Layer 2 solutions, have promoted the development of DeFi.
Current circulation: The total supply of UNI is 1 billion, and the current market circulation is 600 million. The remaining tokens will be gradually released according to the linear unlocking mechanism.
Price changes: UNI has risen from $5.5 to $7.6 in the past month, an increase of about 38%, mainly benefiting from the release of the Unichain testnet.
Future potential analysis: It has become a leading project in the DeFi field, and its market value and trading volume have remained high for a long time.
On October 10, Uniswap Labs announced the launch of Unichain. Uniswap Labs said that after years of building and expanding DeFi products, it saw where DeFi needed to improve and what was needed to continue to advance the Ethereum expansion roadmap. Unichain is a fast, decentralized Optimism superchain L2 that aims to be a cross-chain DeFi and liquidity chain.
The launch of Unichain as a Layer 2 extension chain marks that Uniswap is accelerating its pace of technological innovation, aiming to solve the scalability problem of the Ethereum network. This provides technical support for UNI's future gains. In addition, Uniswap is constantly expanding its liquidity aggregator and cross-chain trading functions. With the popularity of Layer 2 in the future, the reduction of transaction costs and the increase in processing speed will further enhance its competitiveness. Due to Uniswap's dominant position in DeFi and continuous technological innovation, UNI has the potential for long-term growth, but short-term volatility still exists.
3. Sui (SUI): High-performance blockchain and DeFi innovator
Introduction: Sui is a high-performance blockchain built on the Move language, focusing on providing support for DeFi and NFT. Its innovative design and powerful technical performance have enabled it to rise rapidly in the field of decentralized applications.
Current circulation: Sui has a total supply of 10 billion, and currently there are about 2.7 billion tokens in circulation. The token unlocking rhythm is stable, avoiding market selling pressure.
Price changes: SUI prices have risen from $1.80 to $2.10 in the past month, an increase of 16.7%, mainly benefiting from the support of major institutions, the integration of USDC and the launch of decentralized lending platforms.
Future potential analysis: Sui's technical advantage lies in its Move language-based architecture, which makes it extremely scalable and secure, especially in the DeFi and NFT markets.
On September 12, Grayscale stated that its Sui Trust (Grayscale Sui Trust) is open to qualified investors seeking to invest in SUI.
On September 17, SUI cooperated with Circle to introduce native USDC, further enhancing its application potential in decentralized finance.
In addition, the launch of decentralized lending platforms such as Suilend has led to a significant increase in DeFi activities within the Sui ecosystem, and the TVL has continued to increase, showing its strong development momentum. Sui's innovative technology and expanding DeFi ecosystem give it the potential for long-term growth, but the key to the future lies in whether it can attract more developers and users to participate.
4. Jupiter (JUP): Liquidity provider for the Solana ecosystem
Introduction: Jupiter is a decentralized trading aggregator within the Solana ecosystem. By providing users with the best trading path and low-slippage trading experience, Jupiter has become a liquidity bridge in the Solana ecosystem. Jupiter integrates multiple sources of liquidity within the Solana ecosystem to help users complete transactions at the best price, and has also launched a mobile application to further enhance the user experience.
Current circulation: The total supply of Jupiter is 10 billion, of which about 1.35 billion have entered the market circulation. As Jupiter's liquidity management function continues to improve, the demand for tokens has also increased, and the tokens of team and community staking rewards have been gradually unlocked, increasing the liquidity of the tokens.
Price changes: In the past month, the price of JUP tokens has risen from $0.7 to $1.00, an increase of about 42%. The main drivers of the price increase are the expansion of the Solana ecosystem and the improvement of the Jupiter platform in liquidity aggregation.
Future Potential Analysis: On September 20, Jupiter, the DEX aggregator of the Solana ecosystem, released multiple updates. In October, it launched mobile applications, email newsletters, and DAO websites to further enhance the user experience.
The future performance of JUP depends largely on the development of the Solana ecosystem. If Solana's technical problems are effectively solved, JUP is expected to usher in new growth opportunities. If the Solana ecosystem continues to expand, JUP tokens are expected to rise accordingly, but we need to be wary of the technical and market risks of the Solana network.
5. Bittensor (TAO): The founder of the decentralized computing network
Introduction: Bittensor is a decentralized machine learning network that aims to promote the development of Web3 and AI by providing decentralized computing resources. Bittensor provides a GPU-based computing rental platform where users can rent computing resources by paying TAO tokens, and computing node participants in the Bittensor network can earn TAO tokens by sharing computing power.
Current circulation: The total supply of TAO tokens is 21 million, and about 7.38 million are currently in circulation in the market. The remaining tokens are gradually entering the market for leasing and payment of computing resources. Since the liquidity of TAO mainly depends on the computing demand in the network, the growth of the Bittensor project will directly affect the demand for TAO tokens.
Price changes: TAO's price has risen from $250 to $575 in the past month, an increase of 130%. The main reason for the price increase is Grayscale's launch of the Bittensor Trust Fund. At the same time, the increase in demand for decentralized computing resources has also increased the market demand for TAO.
Future potential analysis: Bittensor's innovative model combines blockchain and decentralized computing resources. Especially in the field of Web3, the rise of computing-intensive applications will drive demand for the Bittensor network. As a payment tool in the Bittensor ecosystem, the demand for TAO tokens is expected to continue to grow as the network expands. The Bittensor Trust Fund launched by Grayscale has further strengthened the market's confidence in TAO. As the Web3 ecosystem continues to develop, TAO tokens have significant upside potential, especially against the backdrop of increased demand for decentralized computing resources.
6. dYdX (DYDX): A giant in the decentralized derivatives market
Introduction: dYdX is a leader in the decentralized derivatives market, focusing on providing users with decentralized perpetual contracts and leveraged trading services. Its permissionless architecture and efficient order book system provide users with a highly transparent trading environment and have attracted a large number of institutions and high-frequency traders.
Current circulation: The total supply of DYDX tokens is 400 million, and about 220 million are currently in circulation. The team and investor tokens adopt a gradual unlocking mechanism to ensure that the market will not experience drastic fluctuations due to the large circulation of tokens.
Price changes: In the past month, the price of DYDX has risen from $0.8 to $1.25, an increase of more than 56%. After the return of founder Antonio Juliano, dYdX's market confidence has been boosted, and the expansion of its platform functions and the growth of trading volume have further driven the token price.
Future potential analysis: dYdX's leading position in the decentralized derivatives trading market is unshakable. Its technical architecture and product functions are favored by institutions and large traders. With the return of founder Antonio Juliano, dYdX's strategic direction is clearer, and it is expected to continue to strengthen its derivatives trading capabilities in the future.
On October 20, Charles d'Haussy, CEO of the dYdX Foundation, posted on social media that "at tomorrow's dYdX Day event, speakers will reveal the secrets of moats, Trojan horses, and flywheels."
In addition, the transparency and trustlessness of decentralized exchanges give them long-term growth potential. As a leader in decentralized derivatives trading platforms, dYdX has great growth potential in the long term, especially in the context of continued expansion of the derivatives market in the future.
7. SushiSwap (SUSHI): An innovative force in the DeFi field
Introduction: SushiSwap is an innovative pioneer in the DeFi field. It was originally a fork project of Uniswap, but through technological innovation and expansion, it has gradually established an independent position in the DeFi field. SushiSwap provides functions such as liquidity mining and leveraged trading, and through its unique product design, it has formed a broad user base.
Current circulation: The total supply of SUSHI is 250 million, and currently about 140 million are in circulation in the market. The token lock-up period of the team and early investors is gradually unlocked, and the market demand for tokens is further increased through staking incentives and liquidity mining.
Price changes: In the past month, the price of SUSHI has risen from $0.52 to $0.8, an increase of about 53%. This increase is mainly due to the expectation of SushiSwap's technical upgrade and strategic acquisition plan.
Future potential analysis: On October 21, Sushi Labs CEO Jared Grey posted on X that Sushi surpassed the main aggregators on competing networks in key indicators such as price, gas, and latency, and the aggregation volume is also growing steadily month by month. Sushi is about to announce a strategic acquisition that will enable it to introduce innovative DeFi primitives with built-in invisibility into the AMM and perps vertical.
Its latest technological upgrades and strategic acquisition plans demonstrate the SushiSwap team's ambitions in the future DeFi track. The future performance of the SUSHI token depends largely on whether these innovations can be successfully transformed into practical applications and liquidity growth. SushiSwap continues to enhance its competitiveness in the DeFi market through technological innovation and expansion. In the long run, the SUSHI token has the potential to rise.
8. Worldcoin (WLD): An attempt at identity authentication and Web3 infrastructure
Introduction: Worldcoin is a global identity authentication and Web3 infrastructure project supported by Sam Altman, founder of Open AI. Worldcoin provides global digital identity authentication through World ID, using a decentralized identity system to provide users with real identity authentication services. Its Layer 2 network World Chain is built on Optimism, supports cross-chain transactions, and cooperates with several well-known projects such as Uniswap, Etherscan, etc.
Current circulation: The total supply of WLD tokens is 10 billion, and the current market circulation is about 550 million. As the number of identity authentication users increases, more tokens will be gradually unlocked and enter the market circulation.
Price changes: The price of WLD has risen from $1.3 to $2.3 in the past month, an increase of 76%. Factors driving the price increase include the launch of the World Chain mainnet, cooperation with Dune Analytics to improve on-chain transparency, and Uniswap's trading support on World Chain.
Future Potential Analysis: Worldcoin's application scenarios cover identity authentication, financial transactions, and Web3 applications, and it is committed to providing users with an ecosystem based on real human identity. The impetus for price increases comes from the launch of World Chain's mainnet and the collaboration with Dune Analytics to improve on-chain transparency.
In addition, Uniswap has officially launched on World Chain, which has significantly increased its trading volume and made Worldcoin one of the largest applications on OP Mainnet. If Worldcoin's identity authentication protocol can continue to expand its scope of application and maintain its global user growth, the demand for its tokens will steadily rise. In addition, as the usage of its Layer 2 network World Chain grows and more developers build applications on its platform, the practicality and demand for WLD tokens will increase significantly.
Conclusion: The long-term rise of value coins
Although Meme coins have dominated the market in the past year, as the market matures, value coins are regaining the attention of investors with their technical support, ecological expansion and long-term development potential. These 8 projects demonstrate the potential of value coins in the future market. In the future, as these projects are further implemented, value coins are expected to lead a new round of bull market.
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