Research Summary
The report provides an in-depth analysis of the onchain culture, focusing on Non-Fungible Tokens (NFTs), Web3 Social, Memecoins, and Onchain Gambling. It highlights the performance of various cryptocurrencies, NFT sales volumes, and the growth of decentralized social protocols and onchain casinos.
Key Takeaways
NFT Sales Volume on Solana
- Solana’s NFT Market Growth: The NFT sales volume on Solana crossed $400M in Q4 2023, with SOL surging from $20 to over $100. The rise, coupled with airdrops, triggered an influx of capital into NFTs, peaking at $25M in daily volume on Dec. 15.
- Tensor’s Dominance: Tensor emerged as the go-to marketplace for Solana’s users, incorporating features such as cNFTs and a collection called Tensorians. It implemented a point system, contributing significantly to trading volumes.
Ethereum’s Lead in NFTs
- Ethereum’s NFT Dominance: Ethereum retained its lead in NFTs, achieving $10-50M daily sales volume in the past three months. However, other Layer 1 blockchains like Solana and Bitcoin are growing competitors.
- Popularity of Ordinals: The Ordinals protocol made waves by enabling NFT-like tokens possible on Bitcoin. Amid disagreement on whether Ordinals align with Bitcoin’s mission, 2.4M addresses have minted over 55M Ordinals.
Web3 Social Protocols
- Growth of Web3 Social: The landscape of Web3 social witnessed a landmark shift in 2023, primarily driven by significant launches from Lens Protocol and Farcaster. Both protocols have seen a steady increase in daily active users (DAU).
- Farcaster’s Growth Campaign: Farcaster launched a growth campaign with Coinbase Wallet, significantly boosting new account creation and DAU. However, the effectiveness of this campaign needs to be analyzed in terms of user retention.
Performance of Memecoins
- BONK’s Performance: BONK established its position as the premier memecoin on Solana after a 10x compared to its previous high in January 2023. It is currently the 3rd largest memecoin by market cap and rivals Dogecoin.
- DEX Volume: The highest BONK DEX Volume was in mid-December with $350M+, whereas DOGE topped out in May 2021 with $80M.
Onchain Gambling
- Popularity of Onchain Casinos: Onchain gambling and the popularity of decentralized crypto-native casinos have skyrocketed. Rollbit, a leading onchain casino & trading venue, is pulling in $2.8M/day in fee revenue from their casino vertical.
- Polymarket’s Record: Polymarket, a leading decentralized predictions market on Ethereum, is on pace to set a monthly record for betting volume on the platform.
Actionable Insights
- Monitor Solana’s NFT Market: Given the significant growth in Solana’s NFT market, it’s crucial to keep an eye on its performance and the factors contributing to its success.
- Assess the Impact of Ordinals: The popularity of Ordinals on Bitcoin presents an opportunity to assess its impact on the NFT market and its potential for future growth.
- Understand User Behavior on Web3 Social: The growth of Web3 social protocols like Lens and Farcaster necessitates a deeper understanding of user behavior and retention strategies.
- Track Memecoin Performance: The performance of memecoins like BONK and DOGE should be tracked to understand their market dynamics and user trends.
- Explore Onchain Gambling: The rising popularity of onchain casinos presents an opportunity to explore their business models, revenue streams, and user engagement strategies.
