The inscription is on fire in the crypto market, where will the "hurricane" blow next?

The sound of the cow is faintly audible, what are the wealth codes for the past two months and the next month?

Written by: Terry

Since October, driven by the expectation of spot BTC ETFs, the general rise of various concepts from BRC20, Solana ecology to GameFi has been overwhelming, and the market restart seems to be only in an instant.

In this article BTC, let’s review the mainstream narratives and hot spots of the market in the past two months, and look forward to the track narratives that may take over next. Risk Warning: The crypto market changes extremely fast, so be sure to be aware of the risks!

Rapid rotation of market hotspots

1.BTC Ecology: ORDI Take the Lead

The first thing to bear the brunt is naturally the BTC ecology, especially the inscription track represented by “ORDI”, which has carried the banner of market hotspots in the past two months, and the increase in the price of inscription-related star Tokens has continued to refresh records.

In particular, after the launch of BA, ORDI has been strong, pushing the inscription fever to a climax in just one week, and has become the brightest new star in the crypto market.

This has also spawned the concept of SATS, RATS, and even other public chain inscriptions, but in the past few days, Bitcoin Core developer Luke Dashjr’s fierce criticism of ORDI and other inscriptions has poured cold water on it, and it has also caused ORDI to be on a rollercoaster ride over the past two days.

Overall, Bitcoin Core developers have been opposed to the inscription for a long time and have made it clear that they want to take action, but considering that the inscription market has bound the interests of miners, trading platforms and users, it is destined to be a multi-party see-saw pattern, so the progress will not be very smooth.

It is worth noting that in recent times, there has been a big discussion in the industry about ETH and Layer 2, especially the problems caused by the continuous launch of Layer 2s based on the concept of expansion: liquidity fragmentation, incompatibility with each other, etc., which has also led to the ETH Workshop narrative to be sluggish, and the fire of BTC inscriptions has exacerbated this situation.

2.Solana Ecosystem: SOL Pull up Xiaoyangchun

In this context, the high-performance heterogeneous chain represented by Solana has once again attracted market attention. Among them SOL it has achieved more than 3 times the increase in just two months, and its market value is approaching $30 billion.

Among the SOL factors, in addition to the efforts of the Solana community to rebuild after the FTX incident, the attention of Wall Street veterans brought by Lily Liu, chairman of the Solana Foundation, cannot be ignored, especially the introduction of Sonala to a wider range of over-the-counter funds, which is also a competitive advantage that is difficult for other public chains to replicate at present.

With the rise in popularity of SOL, the Solana ecological project has also ushered in its own small spring, and many noteworthy ecological sub-projects have emerged, among which the oracle project PYTH and the MEV project JTO are undoubtedly the most eye-catching rookies.

In addition, the transmission path of Alt L1 from Solana to the outside is also worth paying attention to, at present, the first transmission chain is Avalanche, and the rest of the new public chains are also being gradually driven.

3. FTX Restructuring Concept

In the continuous advancement of the FTX bankruptcy process, in view of the recovery of billions of dollars in assets, as well as the new restructuring plan is beneficial to users, the expectation of the restart of the trading platform and other factors, the price of FTX’s debt has also risen all the way in recent times.FTT

It’s also clear from the perception of the data dimension that since October this year, the over-the-counter valuation of FTX debt has exceeded $0.5,which indicates that the market expects about half of the user’s assets to be recovered.

As of November, some of the larger FTX creditor claims were quoted to $0.6 to $0.65, a 30% increase from about a month ago, and the market’s optimistic expectations became more apparent.

This also prompted FTT to hit a new one-year high.

Nowadays, there are more and more public news about the over-the-counter collection of FTX claims, especially with the continuous appreciation of SOL’s assets waiting for liquidation, and the process of FTX’s debt processing is also accelerating, and the subsequent rebirth and restart of FTX may not be impossible, and other concepts such as VGX are naturally worth paying attention to.

4.PoW Ecosystem and AI Ecosystem: KAS, TAO

In addition KAS as a new generation of PoW rookies, after repeatedly reaching a new high market capitalization of $1 billion, it also launched BA, and at the same time drove a series of PoW Tokens and even a short-term boom in small PoW trading platforms, but most of them were short-lived except for KAS.

AI-related tokens have once again attracted market attention with OpenAI’s Gong Dou during November, and projects like TAO, which belong to the AI algorithm model market, and at the same time superimpose the concept of PoW, are more likely to attract financial attention.

In particular, TAO is committed to providing AI algorithm models to developers around the world by combining it with specific AI businesses, forming an AI algorithm model market, and enjoying a valuation premium, which has increased by more than 6 times since the beginning of October.

What concepts might take over? **

In addition, what are the other sections or concepts that have signs or potential trends to watch in the future?

1.ETF **Derivative Concept

To some extent, the core narrative that has driven the market rally over the past two months has been driven by expectations for spot BTC ETFs, where the SEC’s attitude is a key determinant.

At present, there are only 5 non-security tokens recognized by the U.S. Securities and Exchange Commission (SEC), which are BCH, LTC and DOT in addition to BTC and ETH.

This means that if the spot ETFs of BTC and ETH are really greenlit by the SEC this year and next, it will only choose from the three non-security tokens of BCH, LTC and DOT if it chooses to apply for a new crypto spot ETF.

Therefore, as the time for the SEC to make a decision on ETFs is getting closer and closer, in addition to the BTC and ETH that the market is currently concerned about, there is undoubtedly great room for speculation and imagination in BCH, LTC, and DOT, and the recent DOT supplement should also contain this expected driving factor.

2.Cosmos Ecosystem is Gaining Popularity

As of the time of writing, many ecosystem projects in the Cosmos system have hit record highs one after another, among which NTRN should be related to the community proposal of “smart contracts with a permission-based deployment model”, as the consumer chain of Cosmos currently focuses on smart contracts, this proposal is equivalent to broadening the applicable contract scenarios of cosmWASM, which is the most direct benefit.

As Cosmos’s current consumer chain focusing on smart contracts, Neturn is equivalent to the smart contract distribution center of the Cosmos ecosystem, so if Neutron can make a good example for the consumer chain, it will be a great benefit to the utility empowerment of ATOM.

In addition INJ also successfully broke through 27 USDT and 11 USDT TIA today, simultaneously hitting a new high. INJ has become the most bizarre token in the Cosmos system this year, with a total market capitalization of $2 billion.

At present, whether it is Celestia, Injective, Neutron, etc., they all bring a lot of variables to ATOM that are worth looking forward to.

Summary

Overall, hot spots have been emerging recently, the bull market seems to be faintly audible, the bear’s footsteps are about to leave, and the market is actually waiting for the boots of spot BTC ETFs to finally land.

Against this backdrop, being cautiously optimistic, always observing and actively participating may be the only thing that can be done in the current market atmosphere of hot rotation.