chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
chandanCrypto Applications Product Market Fit Analysis
In Crypto, there are a lot of applications that haven’t found product-market fit. But there is also a handful of applications that have a product market fit and are growing stably Here I will just explain my thoughts on which applications have Product-Market-Fit. Storage of Value (an asset that maintains or increases its value rather than depreciating)Bitcoin is the dominant product-market fit for this, followed by ETH. However, BTC has questionable long-term sustainability properties. Thanks...
chandanHow to Protect Your Crypto Wallet 95% of the Time
Always keep your private key and seed phrase offline, such as by writing them down on paper and storing them in a secure location that only you have access to. Do not save them on any device or cloud storage, as these can potentially be hacked and your wallet compromised.To further increase security, you can consider leaving out a few words from your seed phrase when writing it down, and memorizing or securely storing these words separately. This way, even if someone gets hold of the paper wi...
chandanAre Layer 2s Superior to Alt-1 for Scaling Capabilities?
Traditional monolithic execution layers rely on 1000s of block producers and non-producing full nodes, requiring a majority of them to act honestly. In contrast, layer 2s only require a single honest "Sequencer" to guarantee network integrity. This asymmetric trade-off suggests that layer 2s will consistently deliver high throughput and significant performance advantages, even when the same hardware is employed by both layer 1 and layer 2. This is due to the inefficiencies of synchronization ...
Researching Layer 1/2s, DeFi, and modular ecosystems.
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Puffer finance using intel SGX, Token market fit, Consumer apps undervalued, Intent-based systems, tokenize everything…
What I wrote this week…
What I read this week…
Puffer finance using Intel SGX Trusted Execution Environments (TEEs) to reduce the slashing event on Eth staked and restaked on its platform. This also allows them to reduce the required to 1ETH way lower, there reward distribution ensures consistent returns for stakers, regardless of individual validator performance.
https://mirror.xyz/pandario.eth/VHCORN0ONkTXiZbqKq9wUMS1uEVd9Cd3QI_2Y4VnW2k
Tokens serve as something of a prediction market on the crowd’s collective interest in a project moving in a particular direction.
The massive expansion of AI token valuations in the last 6 months is clear evidence of this.
Normally when startups go out to raise, it’s because they have a particular set of goals, which requires new funding. This allows for a feedback loop for founders (if people hate your new plans, they won’t invest).
Tokens stand in direct competition to venture capital — they’re substitute products.
https://m.mirror.xyz/YU-zVMLM2RklIkun_LRmEj6vANDpF_mTuCppSAbXup0
Consumer apps are undervalued compared to infra.
https://www.ignasdefi.com/p/in-search-of-bull-market-catalysts
Increased fragmentation means developers are building new ecosystems and applications for consumers to use. Scaling issues mean that more and more people are engaging with experiences onchain.
They are signs of more developers building applications and more consumers using them.
Intent-based bridges are better than message-based bridges. Across is cheaper and faster than other bridges.
https://x.com/hal2001/status/1796501471069897137
Intent-based systems let you abstract everything chain, Defi apps this is the endgame to provide the best user experience. Chain Abstraction is just the start. Intents can be an action on the chain.
Enso is the on-chain intent engine, providing great front-end developer experience. Seems to be good at Defi routing, other intent-based applications can leverage Enso.
2 of the main risks in USDe are the 25% value diversion of stETH from ETH and the Funding rate for ETH/USD short position becoming negative, both these haven’t happened in the past 3 years.
https://jacobrizzuto.mirror.xyz/jPCICBRmKhr0Ll1Oritrls1icQT5yLL75cplrYqzIVw
The idea of 'tokenizing everything' isn’t far off. The time to token for a trend or an event has rapidly shrunk.
What would the world look like where everything has a price tag?
https://mirror.xyz/mg-labs.eth/S5fR4L6hLR3kaQUMU0U9hWV_XmlkEIK8ifk7gwExfko
The gap between CEX and DEX Volume will close with the improved UX with gas fees, account and chain abstraction, and email wallets.
A simple framework to think about potential valuation for ETH (& BTC) this cycle:
$10 trillion market cap for crypto
BTC 40% at peak (43% last cycle)
ETH 45% of BTC market cap at peak (50% last cycle)
= ETH Marketcap at cycle peak = $1.8 trillion
= $14,984 (3.9x) Price/ETH at cycle peak
https://thedefireport.io/research/the-turning-point#eth-etf
Winning consumer apps that own the end user could eventually threaten the protocols.
https://x.com/lmrankhan/status/1796039135729193103
Begin EVM compatible is really important has a new chain, so that you get >90% web3 developer on boarded. Currently, if devs want to build performance apps their only choice is non-EVM chains, I think there is a demand for performant EVM chains.
See you next week!
Puffer finance using intel SGX, Token market fit, Consumer apps undervalued, Intent-based systems, tokenize everything…
What I wrote this week…
What I read this week…
Puffer finance using Intel SGX Trusted Execution Environments (TEEs) to reduce the slashing event on Eth staked and restaked on its platform. This also allows them to reduce the required to 1ETH way lower, there reward distribution ensures consistent returns for stakers, regardless of individual validator performance.
https://mirror.xyz/pandario.eth/VHCORN0ONkTXiZbqKq9wUMS1uEVd9Cd3QI_2Y4VnW2k
Tokens serve as something of a prediction market on the crowd’s collective interest in a project moving in a particular direction.
The massive expansion of AI token valuations in the last 6 months is clear evidence of this.
Normally when startups go out to raise, it’s because they have a particular set of goals, which requires new funding. This allows for a feedback loop for founders (if people hate your new plans, they won’t invest).
Tokens stand in direct competition to venture capital — they’re substitute products.
https://m.mirror.xyz/YU-zVMLM2RklIkun_LRmEj6vANDpF_mTuCppSAbXup0
Consumer apps are undervalued compared to infra.
https://www.ignasdefi.com/p/in-search-of-bull-market-catalysts
Increased fragmentation means developers are building new ecosystems and applications for consumers to use. Scaling issues mean that more and more people are engaging with experiences onchain.
They are signs of more developers building applications and more consumers using them.
Intent-based bridges are better than message-based bridges. Across is cheaper and faster than other bridges.
https://x.com/hal2001/status/1796501471069897137
Intent-based systems let you abstract everything chain, Defi apps this is the endgame to provide the best user experience. Chain Abstraction is just the start. Intents can be an action on the chain.
Enso is the on-chain intent engine, providing great front-end developer experience. Seems to be good at Defi routing, other intent-based applications can leverage Enso.
2 of the main risks in USDe are the 25% value diversion of stETH from ETH and the Funding rate for ETH/USD short position becoming negative, both these haven’t happened in the past 3 years.
https://jacobrizzuto.mirror.xyz/jPCICBRmKhr0Ll1Oritrls1icQT5yLL75cplrYqzIVw
The idea of 'tokenizing everything' isn’t far off. The time to token for a trend or an event has rapidly shrunk.
What would the world look like where everything has a price tag?
https://mirror.xyz/mg-labs.eth/S5fR4L6hLR3kaQUMU0U9hWV_XmlkEIK8ifk7gwExfko
The gap between CEX and DEX Volume will close with the improved UX with gas fees, account and chain abstraction, and email wallets.
A simple framework to think about potential valuation for ETH (& BTC) this cycle:
$10 trillion market cap for crypto
BTC 40% at peak (43% last cycle)
ETH 45% of BTC market cap at peak (50% last cycle)
= ETH Marketcap at cycle peak = $1.8 trillion
= $14,984 (3.9x) Price/ETH at cycle peak
https://thedefireport.io/research/the-turning-point#eth-etf
Winning consumer apps that own the end user could eventually threaten the protocols.
https://x.com/lmrankhan/status/1796039135729193103
Begin EVM compatible is really important has a new chain, so that you get >90% web3 developer on boarded. Currently, if devs want to build performance apps their only choice is non-EVM chains, I think there is a demand for performant EVM chains.
See you next week!
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