In each round of the crypto market cycle, there will be some projects that can increase 100 times or even 10,000 times. As long as you can catch one or two of them, your overall returns will increase significantly.
In fact, in 2023, many 100-fold coin projects have been born, such as the meme coin sector, brc20 sector, etc., but very few can seize the opportunity.
But there is never a shortage of opportunities in the crypto market. If you miss it, you miss it. There will definitely be new 100x coin projects emerging in the future. The important thing is how we can seize these opportunities.
In order to increase the probability of capturing 100x coin projects, we might as well start with the 100x coin projects that appeared in the previous cycle and see what characteristics these 100x coins have, which may provide us with some useful clues.
1. Characteristics of 100x Coins in the Last Bull Market
1. Track
L1: 14
L2: 2
MEME: 3
GameFi: 5
DeFi: 3
IOT: 3
NFT: 2
Cross-chain: 3
Cloud computing: 2
Metaverse: 2
Oracle: 1
It can be seen that among these 61 100x coin projects, L1 accounts for the highest proportion.
The reason why L1 accounts for the highest proportion among the 100x coin projects is also related to the background of the crypto industry in the previous market cycle.
In the last cycle, Ethereum was the only public chain that dominated the market, and it was still in the PoW era. Not only were the transaction gas fees high, but the TPS was relatively low and the transaction confirmation speed was slow. A CryptoKitties game almost dragged down the entire Ethereum network. For Ethereum at the time, it was difficult to support the large-scale application of blockchain technology.
In this industry context, more and more L1 blockchains have emerged, dedicated to solving the prominent problems faced by the Ethereum blockchain, so L1 accounts for the highest proportion in the 100x coin projects.
After the infrastructure construction and sedimentation of the last round of market cycle, the problems faced by the Ethereum blockchain, such as high gas fees and slow speed, have been basically solved. Not only have L1 blockchains such as Solana emerged, but also L2 blockchains such as OP and Arb have emerged. These blockchains have greatly reduced transaction fees and increased transaction speeds.
In the meme coin sector, hundreds of times more coins such as doge and shib were born, which has a lot to do with Musk's brief mention on Twitter.
In addition to L1 and meme, in the last round of DeFi bull market, some 100x coin projects also appeared in the DeFi sector. In addition, a large number of 100x coin projects were also born in the GameFi sector.
The 100x coin projects in each market cycle are closely related to the current market’s hot narratives. In this cycle, the probability of a 100x coin project appearing in the L1 track is not high, because the performance and transaction fee issues faced by L1 have basically been well solved by L2 and others.
2. Market capitalization ranking
Quoting Rooky_Bitcoin’s analysis, from the perspective of market capitalization ranking, in March 2020, 61 100x coins were born among the top 600 currencies by market capitalization (secondary market).
There are 11 companies in the top 100 in terms of market capitalization, accounting for 18%
Market capitalization ranking TOP100-TOP300, a total of 21, accounting for 34.4%
There are 22 companies ranked in the top 300-600 by market capitalization, accounting for 36%.
Therefore, among the top 300 coins by market capitalization, 32 100x coins were born, which is basically equivalent to one out of every 10 coins being a 100x coin, which is equivalent to picking one out of ten.
3. Holding time
It can be seen that each of the 100x coins mentioned above has been held for more than one year.
Moreover, the time of the buying price low point and the time of the Bitcoin price low point are basically synchronized, and the time of the selling price high point and the Bitcoin price high point are also basically synchronized.
As we all know, the price of Bitcoin reached a double peak in 2021. The first breakthrough of $60,000 was in March and April, and the second breakthrough was in November. It can be seen that the selling highs of these hundred-fold coins were mostly distributed in March, April and November.
4. Price
From the prices of these 100x coin projects, we can see an obvious pattern, that is, the prices are generally low. Among the 61 projects, more than 50 have purchase prices below 1, that is, with decimal places.
The reason for this pattern may be that people tend to buy these relatively low-priced tokens, so that they will hold more. Although the total value remains unchanged, at least the number of holdings will appear to be larger. For these prices with multiple decimal places, every zero removed means that the price has increased by 10 times. This is human nature. People are often irrational when trading.
2. 100x Coin Track in This Bull Market
Each cycle has its own mainstream narrative, so we can only use the patterns presented by the 100x coin projects in the previous cycle as a reference.
Because the overall market environment is very different from the previous cycle (of course some internal logic has not changed), we can make some predictions based on the current market trends.
1. Bitcoin Ecosystem
In the current bull market, the Bitcoin ecosystem is undoubtedly the most outstanding performer. The basic protocol Ordinals has completely opened up the Bitcoin ecosystem. The DeFi in the previous bull market will be replicated in this round of Bitcoin ecosystem.
Moreover, compared with other public chain ecosystems, Bitcoin has gained a wider consensus. It is the underlying basic asset of the crypto market. The potential released by the Bitcoin ecosystem will be far greater than that of other public chain ecosystems.
Therefore, the market value of DeFi applications in the Bitcoin ecosystem is likely to be much higher than the market value of DeFi applications in other public chain ecosystems. When valuing DeFi applications in the Bitcoin ecosystem, it is better to be more imaginative.
At present, in the Bitcoin ecosystem, there are actually many projects with hundreds or even thousands of times the value of coins in tracks such as DEX, Lending, Oracle, and Bitcoin Layer 2. Inscription tokens such as ORDI have increased by more than ten thousand times.
However, for the current Bitcoin ecosystem, it can be said that the pattern is still undetermined, and each project has the opportunity to become the leader in its field.
Although Multibit (MUBI) is the leader in cross-bridge chains and Bitstable is the leader in stablecoins, the official websites of the projects have been launched and have produced a lot of actual data, and they are currently in the leading position in their respective segments.
However, for DEX, Lending, Staking, derivatives trading, oracles and other sub-sectors, there are currently no obvious leading projects. Many projects are still in the stage of hyping concepts, and their websites have not yet been launched.
In these sub-segments of Bitcoin DeFi infrastructure, there will definitely be more tenfold or hundredfold coin projects in the future.
In addition to replicating the madness of Ethereum DeFi, it is not ruled out that some niche tracks that are only suitable for the Bitcoin ecosystem will emerge in the future.
In addition, Bitcoin also faces similar problems as Ethereum, such as slow transaction confirmation and high gas fees. These problems are even more serious in the Bitcoin ecosystem, which provides opportunities for Bitcoin's Layer2 solution.
Currently, there are many projects working on Bitcoin Layer2. In the future, some high-quality projects that will be ten or even a hundred times more valuable will be born in the Bitcoin Layer2 track.
In fact, the future outline of the development of the Bitcoin ecosystem seems to have become increasingly clear. Coupled with the halving of Bitcoin production, spot Bitcoin ETF, etc., the Bitcoin ecosystem will give birth to the most 100x coin projects, so you must pay more attention to it.
In short, in this round of bull market, the Bitcoin ecosystem is a major narrative, and more high-quality projects with high returns will definitely be born.
2. Solana Ecosystem
In addition to the Bitcoin ecosystem, the Solana ecosystem will most likely give birth to some high-quality 100x projects.
Compared with Ethereum, the Solana ecosystem is more worthy of attention. Whether in terms of gas fees or TPS, Solana is superior to Ethereum.
This year, the Solana ecosystem has performed unexpectedly. Not only has the TVL soared, but most of the Solana ecosystem DeFi platform tokens have skyrocketed this year, and there have been multiple 10x coin projects.
Moreover, the airdrop efforts of projects in the Solana ecosystem are also relatively large. This year, many of the airdrop projects in the Solana ecosystem have launched large amounts of money.
In addition to DeFi, the leading projects in the current popular DePIN track are basically built on Solana. For example, Helium, Hivemapper, Render, etc. are all current popular DePIN projects, and they are also star projects in the Solana ecosystem.
In addition, currently popular meme coins such as BONK and Silly were also born in the Solana ecosystem. These meme coin projects have brought popularity to the Solana ecosystem, as well as more users and funds.
More users and funds are pouring into the Solana ecosystem, so the Solana ecosystem is very worthy of our attention and layout.
In this round of bull market, you can pay more attention to Solana DeFi, meme coins and other sub-tracks in the Solana ecosystem, and experience more applications in the Solana ecosystem in your daily life.
3. New tracks (DePIN, DeSoc, DeSci, etc.)
Of course, the above classification is only based on the public chain ecology. From the perspective of the public chain, Bitcoin and Solana ecology will give birth to the most 100x coin projects in this round of bull market.
In addition, with the continuous improvement of blockchain infrastructure, the application of blockchain technology is also expanding into traditional fields, giving birth to some new tracks, such as DePIN, DeSoc and DeSci. These traditional fields are applying blockchain technology to integrate resources.
The DePIN track has performed very well this year, with many projects increasing by more than 10 times this year. The DeSci track has also performed well recently.
Moreover, many cryptocurrency research institutions are optimistic about the development of the DePIN/DeSci track in 2024. These new tracks will most likely give birth to a batch of 100x coin projects, which are worthy of more attention. You can usually explore more high-quality projects in this track.
