In the wave of on-chain Token frenzy, can exchange coins make a comeback?

Recently, the cryptocurrency market has shown signs of a altcoin season, with Bitcoin's market share dropping from 60% to 55%. Various sectors have hotspots emerging, such as the AI-related project Virtuals Protocol, which has a market capitalization surpassing $300 million, and a certain exchange's ecological coin HYPE has increased over 10 times. The exchange's open interest continues to hit new highs, exceeding $4.3 billion. There are also new developments in the NFT space, with several blue-chip projects experiencing price increases.

Although on-chain projects are receiving a lot of attention, centralized exchange tokens have not been forgotten by the market. An important factor in this bull market is the possibility of Trump being elected. This means that cryptocurrencies will further enter the public eye, and improved regulations and relaxed supervision will be favorable for external capital inflow. The continuous net inflow of funds into Bitcoin and Ethereum spot ETFs is clear evidence of this.

The Trump family's related project World Liberty Financial has recently made a large purchase of DeFi-related Tokens, including ETH, CBBTC, AAVE, LINK, ENA, and ONDO. How have these Token purchases performed? What common characteristics do they share? What other potential concept coins are there? Let's analyze together.

Purchase Record Overview

World Liberty Financial has invested a total of $44.75 million in cryptocurrency since November 30. As of December 18, all positions are in profit. It is worth noting that their holdings of ETH are significantly greater than those of Bitcoin, which may indicate a more optimistic outlook on the future trend of Ethereum.

Here is an analysis of some purchased tokens:

• AAVE: The global leader in lending, with the highest TVL and a deposit scale approaching $40 billion, a historic high. Recently, the coin price has increased by 35% within 7 days. World Liberty Financial has proposed a cooperation plan, which, if approved, will bring new users and more actual profits to AAVE.

• LINK: A well-known oracle project. World Liberty Financial announced the adoption of it as the on-chain data and cross-chain connection standard to promote the large-scale application of DeFi.

• ENA: Its development is closely related to the current bull market. USDe's yield comes from arbitrage between futures and spot markets; the hotter the market sentiment, the higher the Ethereum funding rate, and the more Ethena benefits. TVL has surpassed $6 billion, reaching a new high. Recently partnered with a major asset management giant to launch the RWA stablecoin USDtb, with yields sourced from government bonds, alleviating market concerns over the funding rate turning negative.

• ONDO: A leader in the RWA sector. After a major asset management giant announced the BUIDL fund, Ondo Finance invested over $95 million, becoming the largest holder. In terms of compliance, legitimacy, capital scale, and market recognition, ONDO is the preferred choice in the RWA sector.

It is worth mentioning COW. World Liberty Financial only purchased the above Token through a certain DEX, so COW is also regarded as a Trump concept coin.

Tokens to Watch in the Future

According to the investment logic of World Liberty Financial, they may focus on tokens with the following characteristics: those that have partnerships with them, have a clear business model, and stable actual returns. They tend to invest in protocols that can bring long-term value rather than chasing purely conceptual tokens.

Potential subjects of interest include:

• LDO: Given World Liberty Financial's preference for ETH, they may be optimistic about Ethereum's long-term development. As the Ethereum staking mechanism matures and ETF may introduce staking rates, LDO, as the largest liquid staking protocol (TVL $37 billion, accounting for 30% of the Ethereum staking market), may become the preferred choice.

• Pendle: Focused on the yield splitting market, allowing the trading of future yield rights. As the staking rates of Ethereum and the yields of protocols like USDe increase, the demand for yield trading has risen. Pendle's recent TVL has surpassed $5 billion, collaborating with several mainstream DeFi protocols.

• UNI: As the pioneer of DeFi Summer and the most widely used decentralized exchange, UNI is a leader in the field. Although the response to its recently launched Unichain market has been lukewarm, this does not affect users' reliance on its products.

Summary: Blue-chip projects become the focus

World Liberty Financial's large-scale purchases of cryptocurrencies may aim to gain more trust or to promote its own project development by drawing attention to these assets. If these assets perform well, World Liberty Financial could also benefit from this.

Their proactive layout of blue-chip projects not only boosted market confidence in mainstream DeFi protocols but also introduced more institutional funds into the crypto market. This flow of funds further stabilized the market, driving mainstream projects towards higher market value and development potential.