After a sharp market downturn, which sectors should you pay attention to?
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After a sharp market downturn, which sectors should you pay attention to?
Don't live on Twitter; live on project fundamentals.
Navigating Web3 tides with focused insightsBy: Pima
After every major market downturn, the curtain falls on the old guard, while a new generation begins writing its own brilliant chapter. What we must do is treat investment with utmost seriousness and carefully select projects.
The rhythm repeats each cycle—only the protagonists change. Some projects had essentially completed their bull run before May 19, 2021, spending most of the subsequent period struggling just to return to previous highs, such as UNI representing DeFi, or DOGE, BNB, DOT, MATIC, etc.
Other projects remained strong like energetic youth after May 19, achieving significant gains—5x to 10x their pre-May-19 peaks—only peaking in December 2021, such as SOL, LUNA, SHIB, AXS, SAND, and others.
So from my personal perspective, what should we be watching for this time after the recent crash?
1/ SOL and its ecosystem—nothing more needs to be said. You can't wake someone who's pretending to sleep.
2/ SAGA and its ecosystem—a modular L1 with built-in ecosystem advantages. However, user acquisition remains challenging; it’s about waiting for that tipping point.
3/ SUI and its ecosystem—technologically solid, as one of the MOVE twin stars and other L1s—but facing severe challenges in attracting users. Long-term DAU sits at only 20k–50k, widening the gap compared to SOL or BNB, which routinely reach 1M+ DAU. New technologies and brands are far less attractive to mainstream users than expected.
Don’t live on Twitter. Stay grounded in project fundamentals. Sometimes you think something is hot and trending, but it might just be popular within your group or circle. Check on-chain data—you’ll find only a few thousand people globally are actually using it. It’s like playing house.
4/ CLOB orderbooks. AMM has fulfilled its mission. High-scalability L1s need better-suited DEXs. Competition is fierce—UNI’s V5 also seems to be moving toward an orderbook model. Among Drift, Hyperliquid, RabbitX, and others, which will emerge? Is there room for dual-token Purr?
5/ What will become of SocialFi? Will $FRIEND, Fantasy, DistrictOne deliver truly native crypto experiences? Scaling up and improving user retention remain key challenges for SocialFi to address.
6/ Are there opportunities in new AI projects? When will they achieve positive revenue? $NMT, $DEAI, $NOS—we’ve seen how strict and demanding US markets are toward AI company earnings, yet they also reward real performance handsomely. Crypto-based AI projects will generate revenue too, but the question is how to scale and build sustainable moats.
7/ RWA is indeed one path toward product-market fit. Stand tall when taking hits. I’m still unclear on how to best evaluate these projects—this calls for collective wisdom. $MKR, $RIO.
8/ MEME—You may think your MEME token keeps rising steadily, but the journey is anything but smooth. You only see the end result, ignoring the agony of holding through volatility (STAN, MONK, GIGA). Recently, it's been fascinating to observe the "Elvis cat" rivalry—tensions between community-driven cats like POPCAT and MICHI versus VC-backed cats. So far, purely community-led MEMEs have won decisively. The anti-VC sentiment has now reached the MEME space.
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@LeePima
