The on-chain frenzy is surging, can exchange tokens regain favor?

Recently, the cryptocurrency market has shown a flourishing trend, with Bitcoin's market share dropping from 60% to 55%, indicating the start of altcoin rallies. Various sectors are continuously generating hotspots, with AI-related projects such as Virtuals Protocol reaching a market cap of over $300 million, and the open interest on a certain exchange also hitting a new high of $4.3 billion. Even the NFT sector, which was once neglected by the market, has revived, driving multiple blue-chip NFT projects under the Ethereum and Solana ecosystems to rise.

Although the current hot topics 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: Trump may be elected president again. This event could further bring cryptocurrency into the public eye, improve relevant regulations, and relax supervision, which is beneficial for attracting more external funds into the cryptocurrency field. This can be seen from the continuous net inflow of funds in Bitcoin and Ethereum spot ETFs.

It is noteworthy that the World Liberty Financial project related to the Trump family has significantly purchased DeFi-related tokens over the past month, including ETH, CBBTC, AAVE, LINK, ENA, and ONDO. These tokens have generally performed well after being acquired, and as of December 18, all these coins held by World Liberty Financial are in a profitable state.

Interestingly, unlike traditional institutions that prefer Bitcoin, World Liberty Financial holds a significantly larger amount of Ethereum compared to Bitcoin, which may suggest they have a more optimistic view on the future trend of Ethereum. The other tokens they purchased are also distinctive: AAVE, as the leader in the lending market, has a TVL close to $40 billion; LINK is an established oracle project; ENA is closely related to the current bull market, with a recent TVL surpassing $6 billion; ONDO is the leader in the RWA sector.

Based on the investment strategy of World Liberty Financial, it can be speculated that they may continue to focus on projects with clear business models and stable actual returns. For example, LDO, as the largest liquid staking protocol in the Ethereum ecosystem, has a TVL of up to $37 billion; Pendle focuses on the yield splitting market, with a recent TVL surpassing $5 billion; UNI, as the leading decentralized exchange, has high user reliance.

Overall, World Liberty Financial's active layout of blue-chip projects has not only enhanced the market's confidence in mainstream DeFi protocols but also introduced more institutional funds into the crypto market. This flow of funds helps stabilize the market and pushes mainstream projects towards higher market capitalization and development potential. As the cryptocurrency market continues to evolve, we may see more institutional investors focusing on and investing in these protocols with long-term value.