Crypto world Hotspot Rotation: Can Exchange Tokens Regain Attention?

Recently, the cryptocurrency market has shown a diversified development trend. Bitcoin's market share has decreased from 60% to 55%, indicating the arrival of the altcoin season. Several hotspots have emerged in the market: AI agent projects are leading the trend, with one protocol's market value once exceeding 300 million USD; an AI project within a public chain ecosystem reached a market value of up to 1 billion USD; and a liquidity protocol's ecosystem coin has surged more than 10 times. On the product level, the open interest of certain exchanges has also reached a new high, surpassing 4.3 billion USD. Even the NFT sector, which was once overlooked by the market, has become active again, with several well-known projects issuing tokens, driving up the prices of blue-chip NFT projects on Ethereum and Solana.

Although these hotspots are mainly focused on on-chain projects, the tokens of centralized exchanges have not been completely forgotten by the market. In fact, there is another potential factor in this bull market that cannot be ignored: the US election.

If a certain candidate is elected, it may further bring cryptocurrency into the public eye. Improvements in the regulatory environment and the relaxation of restrictions could promote external capital inflow into the cryptocurrency market. The continued net inflow of funds into Bitcoin and Ethereum spot ETFs is evidence of this trend. It is noteworthy that a financial project related to a certain political family has purchased a large amount of DeFi-related Tokens in the past month, including ETH, CBBTC, AAVE, LINK, ENA, and ONDO.

So, how are these purchased Tokens performing? What common characteristics do they share? What other potential concept coins are worth following? Let's analyze it together.

Investment Overview

According to public data, starting from November 30, a certain financial project has invested a total of 44.75 million USD to purchase cryptocurrency. As of December 18, these holdings are all in profit.

Interestingly, unlike traditional institutions that prefer Bitcoin, the amount of ETH held by this project far exceeds that of Bitcoin, which may reflect their optimistic expectations for the future price trends of Ethereum.

• AAVE, as the leader in the lending market, ranks first in TVL with a deposit size nearing 40 billion USD, setting a historical high. Recently, the coin price increased by 35% within a week. In addition, this financial project is exploring potential cooperation with AAVE.

• LINK is a well-known oracle project. On November 14, the financial project announced that it will adopt a certain oracle as the standard for on-chain data and cross-chain connectivity to promote the mass adoption of DeFi.

• The development of ENA is closely related to the current bull market. As its revenue comes from arbitrage between futures and spot markets, the more optimistic the market sentiment and the higher the Ethereum funding rate, the more revenue this project can generate. Recently, its TVL surpassed $6 billion, setting a new historical high. They have also partnered with a large asset management company to launch an RWA stablecoin based on government bond yields.

• ONDO is a leading project in the current RWA track. After a large asset management company announced the launch of a crypto fund, ONDO invested over $95 million, becoming the largest holder. In terms of compliance, legitimacy, capital scale, and market recognition, ONDO stands out in the RWA track.

It is worth mentioning that COW is also regarded as a related concept coin, as this financial project uses a certain protocol for the purchase of the aforementioned Token.

Analysis of Potential Investment Targets

Based on the investment strategy of this financial project, we can speculate on the next investment targets they may follow.

The preferred tokens are those that have a partnership with the project. Secondly, they seem to place more importance on "clear business models" and "stable actual returns". Tokens like AAVE, LINK, ENA, and ONDO have clear product positioning, a large user base, and actual revenue models. This indicates that they tend to invest in protocols that can bring long-term value, rather than purely pursuing "novel" or "conceptual" tokens.

Here are a few projects that may pique their interest:

1. LDO: Considering the significant holdings of ETH in this financial project, they may be optimistic about Ethereum's long-term potential. With the maturation of Ethereum's staking mechanism and the possibility of ETFs introducing Ethereum staking yields, a certain liquid staking protocol may become the preferred choice. This protocol is the largest liquid staking protocol in the Ethereum ecosystem, with a TVL of $37 billion, accounting for 30% of the entire Ethereum staking market.

2. Pendle: Focused on the yield splitting market, allowing users to trade future yield rights. With the rise of Ethereum staking rates and certain protocol yields, the demand for yield trading has increased, making Pendle a focal point in this bull market. Recently, Pendle's TVL has surpassed $5 billion and has established partnerships with several mainstream DeFi protocols.

3. UNI: A certain decentralized exchange is a pioneer of DeFi Summer and is currently the most commonly used DEX by users. Although their recently launched cross-chain solution has received a lukewarm market response, this does not affect users' reliance on their products.

Summary: Blue-chip projects are favored

Regarding the large-scale purchase of cryptocurrency by a certain financial project, an analyst from a data analysis platform stated to the media: "This purchasing behavior may be aimed at gaining more trust, or driving 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."

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