Research Summary
The report discusses the rotation of investments among Layer 1 blockchain platforms, particularly Solana, Luna, and Avalanche, and the potential for new entrants like TIA and INJ to join this rotation. It also highlights the rise of Solana’s network activity, the success of Trader Joe on Avalanche, and the potential of decentralized physical infrastructure (DePIN). The report further explores the use of Dropbook for managing airdrop tasks across multiple wallets.
Key Takeaways
The New Layer 1 Rotation
- Rotation among Layer 1 platforms: The report discusses the rotation of investments among Layer 1 blockchain platforms, particularly Solana, Luna, and Avalanche. This rotation strategy has allowed many investors to compound their gains significantly.
- Potential new entrants: The report suggests that TIA and INJ, two leading Cosmos Layer 1 platforms, could replace Luna in the rotation due to their strong performance and position within the Cosmos ecosystem.
Solana’s Network Activity and Trader Joe’s Success
- Solana’s network activity: The report highlights the rise in Solana’s network activity, driven by the Jito airdrop. Solana’s DEX volume even broke its all-time high, reaching 70% of Ethereum mainnet’s volume at one point.
- Trader Joe’s success: Trader Joe, the leading DEX on Avalanche, has seen a significant increase in its fees, breaking into the top 10 of all crypto applications.
Decentralized Physical Infrastructure and Airdrop Farming
- Decentralized Physical Infrastructure (DePIN): The report discusses the potential of DePIN, sparked by Helium’s announcement of a $20/month unlimited phone plan in the US. DePIN represents real business conducted on-chain and inflows independent of speculation.
- Airdrop farming: The report explores the use of Dropbook for managing airdrop tasks across multiple wallets. Airdrop farming, or “pre-farming” a DeFi protocol by using it early before it has a token, can be quite lucrative.
Actionable Insights
- Monitor Layer 1 rotation: Investors should keep an eye on the rotation among Layer 1 platforms and consider the potential of new entrants like TIA and INJ.
- Track Solana’s network activity: Given the recent surge in Solana’s network activity, it would be prudent for investors to monitor whether these metrics fully retrace or stay elevated from their pre-airdrop levels.
- Consider the potential of DePIN: Investors should research the potential of DePIN, which represents real business conducted on-chain and inflows independent of speculation.
- Explore airdrop farming: Investors might want to explore airdrop farming and consider using tools like Dropbook to manage airdrop tasks across multiple wallets.
