Recently, with a US federal judge ruling that XRP is not a security in retail sales, Ripple has achieved a brief victory in its three-year battle with the US SEC. As a result of this news, the prices of many cryptocurrencies in the market have seen a significant increase, and many KOLs have expressed their expectations for a small bull market.
In response to this, Crypto researchers MooMs and Salazar.eth have summarized 20 "potential stocks" worth investing in during a bear market that may make a breakthrough in the next bull market. The research was compiled and slightly modified by BaiZe Research Institute. It should be noted that any projects or views mentioned below should not be considered investment advice. DYOR
1. Mantle
Mantle is a novel L 2 solution supported by BitDAO (which manages around $3.2 billion in funds) and has received support from multiple crypto entities, including ByBit. Its modular design and all partnerships make it one of the most promising L 2 solutions.
2. Radiant
Radiant is a full-chain lending protocol based on LayerZero. It allows users to collateralize funds on one chain and borrow from another.
Its metrics are impressive in the current bear market:
• TVL - $665 million
• Market cap - $84 million
• Annual revenue - $19 million
3. MUX Protocol
MUX Protocol is a perpetual DEX aggregator that provides users with deeper liquidity and lower slippage.
As the perpetual DEX sector develops and with the project's innovations and improvements, MUX will benefit from it.
It ranks steadily in the top 5 with excellent indicators.
4. Optimism
The third-largest ETH rollup calculated by TVL.
Their OP Stack and Superchain ecosystem vision is very promising and they already have several well-known participants:
• Coinbase
• Binance
• Worldcoin
• a16z
5. Velodrome
It is the largest protocol on Optimism according to TVL calculations, one of the largest DEX in all DeFi, and also the most decentralized (risk-free investment/private financing + 100% of revenue to the community).
Its indicators are very good (Market Cap/TVL = 0.06), and it will also become the top DEX on Coinbase's L2 network Base built on the OP Stack.
6. Maverick
Maverick recently completed a $9 million round of financing, aiming to utilize an innovative AMM model that allows users to provide liquidity based on market conditions with high capital efficiency.
Maverick is positioned by the crypto community as a leading DEX for LST (Liquidity Staking Token), and it is bullish.
7. Pendle
Pendle allows users to trade yield strategies through AMM, by acquiring separate tokens for yield and principal.
For example, users can purchase LSD ETH at a discounted price without the yield and speculate on the yield of GLP.
8. Premia Finance
Premia ranks third in the options field, allowing users to trade options with "best-in-class pricing" based on real-time supply and demand. Its model provides traders and liquidity providers with a more efficient capital structure and a fairer experience.
9. Frax Finance
I like to call Frax a "superapp" because it allows users to mint FRAX (a partially collateralized decentralized stablecoin) and frxETH (one of the biggest LSTs in DeFi).
It is the most promising DeFi stablecoin protocol and one of the most potential protocols in the LSDfi space.
10. Unibot
Unibot is a Telegram bot that allows users to trade DeFi projects directly from TG chats.
It brings DeFi to Telegram, simplifying the user experience.
Unibot is deployed only on the ETH network, but it generated about $690,000 in revenue last month.
11. Scroll
When we talk about zkEVM, we think of Scroll. Why?
Scroll positions itself as a zk Rollup L 2 network with the most complete Ethereum spirit. Besides having sufficient funds (participated by Polychain, Sequoia China, OKX, etc.), the development team has excellent technology to support this positioning. In my opinion, Scroll will become the first zkR.
12. Polygon 2.0
"Divergence phase": from sidechains to the proposed Validium, and then to becoming the first zkEVM. Polygon has led many narratives, expanding the scale of the Ethereum network through experimentation and trying various possible methods.
"Closing phase": with Optimism launching OP Stack, other leading L 2 solutions such as Arbitrum and zkSync are also making similar modular expansion attempts. Among them, the Polygon development team recently proposed the Polygon 2.0 upgrade, aiming to become a "Supernet" that combines numerous L 2 solutions, where any user can create, exchange, and program value, and any developer can create L 2 networks without permission.
13. Starknet
Starknet is an Ethereum zk Rollup L 2 network. Starknet, due to its use of the programming language Cairo, is not classified as zkEVM. Its purpose is to generate STARK proofs to reduce the time spent on verifying transactions, while maintaining the security of the Ethereum mainnet, thus achieving low transaction fees and high throughput.
With the recent Quantum Leap upgrade to the upcoming improved version of Cairo 2.0, transaction speeds are expected to improve significantly in the long run, helping DeFi, gaming, social, and other dApps to break through the limits of possibility.
14. EigenLayer
EigenLayer is a protocol that can change the rules of the game, and it first introduced the concept of "re-staking" narrative. EigenLayer is a value layer that can be utilized by most dApps, RAAS (Rollups-as-a-Service), L 1, and L 2 as their economic structure.
AltLayer recently announced its partnership with EigenLayer, and the Mantle Network also chose to adopt EigenLayer, believing that there will be many others following suit in the future.
15. Thena Finance
Thena is a DEX built on the BSC network and is one of the protocols with the highest token holder rewards in the entire BSC ecosystem.
6 months ago launched, but the circulating market value is currently only $5.2 million.
If Binance supports (or lists) this BSC native project, or if Thena moves towards multi-chain, Thena still has potential.
16. Lybra Finance
Lybra Finance is one of the best LSDFi projects, a stablecoin protocol supported by LSD. Its selling point is that users can mint interest-bearing stablecoin eUSD by depositing ETH or stETH, and holders can earn real-time returns of approximately 7.2% APY.
"Give you a stablecoin that will multiply in your wallet as long as you hold it."
Lybra Finance has generated over $1 million in actual returns for eUSD holders.
Looking forward to the protocol getting even better after the upcoming V2 upgrade.
17. LayerZero
LayerZero is a cross-chain infrastructure (not a cross-chain bridge) that helps users and developers to achieve information transfer between different blockchain networks and also enables information exchange between dApps across different networks, achieving cross-chain dApps. For example, data and asset interaction information of a DeFi application on Chain A can be transmitted to a DeFi application on Chain B.
Currently, LayerZero has supported information transfer between Ethereum, Avalanche, Fantom, Arbitrum, Optimism, and other EVM chains, as well as non-EVM chains like Aptos.
It can be said that LayerZero is one of the best innovations in the cryptocurrency industry today and has received support from top-tier venture capitalists including a16z and Sequoia.
18. Ethos Reserve
Ethos Reserve is an efficient and stable lending protocol built on the Optimism network with high LTV (Loan-to-Value) and accepts multiple types of collateral, providing interest-free credit.
Currently, users can earn stablecoins ERN by depositing assets such as ETH, BTC, and OP.
19. Conic Finance
Conic Finance is a platform built specifically for liquidity providers to easily diversify their investments across multiple Curve pools. Any user can provide liquidity to the Conic Omnipool, which distributes funds on Curve according to the weights of the protocol's pools.
At the time of writing this article, the Omnipool has been launched on Conic for 4 days and currently offers the highest single-asset ETH staking yield in the entire DeFi ecosystem.
The current TVL of Omnipool exceeds $150 million and has the potential to grow to $500 million.
20. Level Finance
Level Finance is a perpetual DEX that was initially built on the BSC network and later expanded to the Arbitrum network.
Recently, the development team proposed a token burn proposal to regulate token emissions, and currently, 180,000 LVL tokens have been burned.
This is the reason why I am bullish on Level Finance in the long term. At the time of writing this article, Level Finance has incurred a significant expense of $516,000 in the past 24 hours, with 30% going to the national treasury, which is $154,000. The national treasury will destroy $154,000 worth of LVL tokens.
Risk Warning:
According to the notice issued by the central bank and other departments on "Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation," the content of this article is for informational sharing only and does not promote or endorse any business or investment activities. Readers should strictly comply with local laws and regulations and refrain from participating in any illegal financial activities.
