[Investment Observation] When discussing the current rise in the cryptocurrency market, we must be aware of its high volatility and unpredictability. Nevertheless, based on existing market trends, technological advances and project dynamics, the following sectors are worth paying attention to:
The Layer 2 solution sector is attracting much attention due to the congestion and high transaction fees of main chains such as Ethereum. Layer 2 projects such as Arbitrum, Optimism and Polygon have achieved significant improvements in transaction efficiency and cost reductions by building additional protocol layers, attracting many users and projects to join.
The DeFi (decentralized finance) sector, with its smart contract technology, provides financial services without trusting intermediaries, which continues to stimulate market vitality. Projects such as Compound, Uniswap, and MakerDAO occupy a key position in the DeFi field, driving the continued development of the sector.
The NFT and Metaverse sectors remain popular due to the uniqueness and scarcity of NFT as the core asset of the Metaverse. With the deepening of the concept of the Metaverse and the development of technology, the application scenarios of NFT are becoming increasingly rich, injecting new impetus into the growth of the sector.
In addition, emerging blockchain platforms such as Solana, Avalanche, Polkadot, etc., have attracted a large number of users and projects with their technological innovation and ecological construction, becoming the new favorites of the market.
