You're struggling to make money because you're chasing old narratives:
L1s: ETH and SOL
Perp Dex: HYPE
Launchpad: PUMP
Every cycle people pile into the hot sectors of the past cycle.
It worked for Solana holders, but it didn't work for Cardano and Avalanche holders.
You’re playing in markets where the winners already won.
So you're more likely to lose your money.
Why?
When winners are established, so is the upside of that sector.
Here's how you increase chances of a 10x:
1. Find an emerging sector with no clear winner yet.
Most people chase the same narratives where the winners are already established.
So you rotate in late, fighting for scraps.
Here how you can find an emerging sector:
- Track user growth
I use tools like DeFiLlama and @HeyElsaAI to see which sectors users are growing the fastest.
I add these sectors to a shortlist.
- Identify sectors with multiple strong contenders
Multiple strong contenders in 1 sector tells me there's demand for what they're building.
I check this on Coingecko and Coinmarketcap categories.
You want 3-5 projects with a similar market cap at the top.
That means you're early.
- Check onchain usage
Onchain usage tells you that people are actually using these apps.
I look for:
- Daily active users
- Transaction volume
- Fee revenue
- Retention (are users coming back?)
The tools I use for this are Dune, Token Terminal and Artemis.
2. Make sure the sector benefits the end user
Most people pick the wrong narratives because they don't use the product.
The sector i'm bullish on is Crypto Neobanks.
A crypto neobank is a digital banking app that runs on stablecoins instead of traditional dollars.
In other words: a bank app that uses crypto rails behind the scenes but feels like a normal bank account.
The benefits include:
- Higher yields on your money (4-10%)
- Faster payments
- Global access
For this narrative, i'm betting on @useTria.
Because i've used my Tria card and it's giving me 6% cashback on every purchase.
It's better than my traditional bank cards so i'm bullish.
3. Allocate small % of portfolio
Investing in new narratives is very risky.
Just because you like something, doesn't mean the rest of the market will.
For this reason, you should only ever invest a small % of your portfolio into an emerging narrative.
I can't promise a 10x anywhere.
Nobody can so you need to manage risk effectively.
But if you're in the market for a 10x in 1 year.
You're wasting your time on the old narratives.
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