The on-chain boom is surging, can exchange tokens take advantage of the pump?

Recently, the cryptocurrency market has shown a trend of diversified development, with Bitcoin's market share dropping from 60% to 55%, signaling the arrival of the altcoin season. Market hotspots emerge frequently, showcasing a variety of projects: AI-related projects such as a certain protocol saw its market capitalization exceed $300 million, while an AI project within a certain ecosystem reached a market value of $1 billion. On a certain exchange, the open interest has repeatedly set new highs, surpassing $4.3 billion. Even the NFT sector, which was once neglected by the market, has become active again, driving the prices of several blue-chip NFT projects within the Ethereum and Solana ecosystems to rise.

By observing these hotspots, it can be found that they are mostly concentrated on-chain projects. So, have the tokens of centralized exchanges really been forgotten by the market?

This is not the case. Another potential factor in this round of the bull market that cannot be ignored is the possibility of Trump being elected. This means that cryptocurrencies will further enter the public eye. The improvement of regulations and the relaxation of oversight are both conducive to attracting external funds into the cryptocurrency market. The continuous net inflow of funds into Bitcoin and Ethereum spot ETFs is a clear evidence.

It is worth noting that a financial project related to the Trump family has made significant purchases of DeFi-related cryptocurrencies in the past month, including ETH, CBBTC, AAVE, LINK, ENA, and ONDO. How have these tokens performed after being purchased? What common characteristics do they share? What other concept coins are worth paying attention to? Let's analyze it together.

Starting from November 30, the financial project invested a total of $44.75 million to purchase cryptocurrencies. As of December 18, all held coins are in profit. Interestingly, compared to traditional institutions, the project holds far more Ethereum than Bitcoin, which may reflect their optimism about the future price trend of Ethereum.

As the leading lending platform in the entire market, AAVE ranks first in TVL, with a deposit scale nearing 40 billion USD, setting a new historical high. Recently, the coin price has risen by 35% within seven days. The community of this financial project has proposed a collaboration with AAVE, which is currently under review by AaveDAO. If the proposal is approved, it will bring new users and more actual revenue to AAVE.

LINK is a well-known oracle project. On November 14, the financial project announced that it would adopt a certain oracle as the on-chain data and cross-chain connection standard to promote the large-scale adoption of DeFi.

The development of ENA is closely related to the current bull market. As the yield of its stablecoin comes from arbitrage between spot and futures, the hotter the market sentiment, the higher the Ethereum funding rate, which allows the project to gain more profits. Recently, its TVL has surpassed 6 billion USD, setting a new historical high. In terms of products, they have also partnered with a large asset management company to launch an RWA stablecoin with government bonds as the source of yield, alleviating concerns about the protocol falling into a death spiral due to the possibility of negative funding rates.

ONDO is the leader in the current RWA sector. After a major asset management giant announced the launch of a crypto fund, Ondo Finance invested over $95 million, becoming the largest holder. Whether it is compliance, legitimacy, fund size, or market recognition, ONDO is the best choice in the current RWA sector.

In addition, COW is also worth mentioning. This financial project only used a certain protocol for trading when purchasing the above coins, so COW is also regarded as a related concept token.

Based on the investment strategy of this financial project, we can speculate on the coins they may focus on in the future. The first choice is tokens that have a partnership with the project, followed by projects that have a "clear business model" and "stable actual returns". This indicates that they will not blindly pursue "novel" or "pure concept" tokens, but rather prefer to invest in protocols that can bring long-term value.

LDO may be a potential investment target. Considering that this financial project holds significantly more ETH than BTC, they seem very optimistic about Ethereum's long-term potential. With the maturation of Ethereum's staking mechanism, along with the possibility of ETFs introducing Ethereum staking yields, LDO, as the largest liquid staking protocol currently, has a TVL of 37 billion USD, accounting for 30% of the entire Ethereum staking market.

Pendle focuses on the yield splitting market, allowing users to trade future rights to yields. With the rising staking rates of Ethereum and the yields of certain stablecoin protocols, the demand for yield trading markets continues to increase, making Pendle highly regarded in this bull market. Recently, Pendle's TVL has surpassed $5 billion and has established partnerships with several mainstream DeFi protocols.

As a leading decentralized exchange, UNI is the origin of DeFi Summer and is the most commonly used DEX by users. Although the market response to their recently launched new products has been mediocre, this does not affect users' reliance on their core products.

Regarding the behavior of a financial project heavily purchasing cryptocurrencies, analysts from a data analysis company believe that this may be to gain more trust or to promote the development of its own project by drawing attention to these assets. Because if these assets perform well, the financial project may also benefit from it.

The financial project actively lays out blue-chip projects, which not only enhances the market's confidence in mainstream DeFi protocols but also injects more institutional funds into the crypto market. Such a flow of funds further stabilizes the market and pushes mainstream projects towards higher market value and development potential.