2022 was a big year for crypto but three major implosions in the industry (Terra-Luna, 3AC and FTX) lead to a bearish market. Even if liquidity issues and insolvencies will likely continue to be discovered in both CeFi and Defi services, we believe 2023 will be an optimistic year for Web3 and its adoption in the mainstream.

Infrastructure of the future is being built, and we’re here to highlight our favourite narratives for the exciting year to come.

7 BIGGEST NARRATIVES FOR 2023

Being early to a hot narrative is one of the simplest way to generate wealth. But identifying them is a bit more challenging…

After reading hundreds of pages of crypto reports and market analysis, here are the 7 narratives that caught our attention:

1. NFTFI

NFT communities have shown remarkable staying power despite the current downtrend in the market because, let’s admit it, NFT are pretty cool.

However, a majority of crypto users stay away from NFT Bluechips for 3 main reasons:

• They’re out of their reach
• They’re too illiquid
• They’re not capital efficient

It’s not anymore the case thanks to NFTFI. A brand new financial ecosystem is being built under our eyes, at crazy low valuations.

In 2023, 2D liquidity turns 3D with:

- @nftperp to long or short NFTs with leverage (remember: 75% of Binance trading volume comes from derivatives)
- @NFTfi, @BendDAO, @JPEGd_69 & @kairosloan to borrow & lend NFTs
- @metastreetxyz and @spice_finance to use top liquidity routing
- @NFTX_ and @tessera to fractionate NFTs and turn them into smaller pieces, more liquid and affordable for the average Joe

2. EIGENLAYER

Infrastructure upgrades are lagging behind application development because:

• They are permissioned
• They require prudent risk analysis before core upgrades
• They need a large capital foundation as security of their core consensus logic

@Eigenlayer fixes it by introducing a SC layer on Ethereum, allowing trust network to secure core infrastructure & middleware through re-staking.

It launches a win-win two-sided marketplace: ETH stakers gain extra yield while external networks gain a trust layer

⚠️ Slashing risk is compounded so they will need to implement leverage limits for the stability of the trust system.

Token not out yet!

3. LIQUID STAKING DERIVATIVES (LSDs)

ETH staking used to be game for whales because it implied 32ETH minimum stake, significant duration + technical risk and high opportunity cost.

But it's now open to all thanks to liquid staking protocols and they're going to rip off the roof in S1 because Shanghai upgrade - which enables ETH staking withdrawals - comes in March.

@Rocket_Pool might be the biggest winner with 3 main advantages:

• 16ETH to run a mini-pool
• Partnerships with Coinbase & Eigen Layer
• Benefits from tax efficiency

We also advise you to keep an eye on $FXS and $SWISE too.

4. MODULAR BLOCKCHAINS

Adopting modular architectures improves scalability, shared security and sovereignty.

They should attract billions of TVL and mark the end of the monolithic era.

@CelestiaOrg (which can be seen as the Amazon Web Services of blockchains) and @fuellabs_ are are the two projects to monitor closely.

5. DECENTRALIZED STABLECOINS

It's not sexy, but stablecoins are the biggest use case for DeFi.

Two major protocol stablecoins are coming:

• $GHO ( @AaveAave )
• $crvUSD (@CurveFinance )

They will overtake $DAI, $LUSD and $FRAX and drive great revenue for $AAVE and $CRV holders.

6. NATIVE L2 DAPPS

Rollups are the future. That's where the smart money is pouring now.

Innovative dapps such as @GMX_IO, @VelodromeFi or @briqNFT are the flagships of these chains.

You'll find your next x100 in here - if you're fast & sharp.

7. AIRDROPS FARMING

Not a narrative per se, but we can't ignore it speaking of money.

You should focus on high-valuation, US VC backed projects.

⚠️ They will take sybil resistance more seriously, so it's only for experienced players.

Remember: You can generate wealth if you’re early to the right narratives.

So study these consistently and invest with a solid risk-management system and we promise that’s everything is going to be all-right for you in 2023.

Thanks for reading our article. If you learned anything:

1. Collect and share it on Twitter
2. Tell us which is your most promising narrative for 2023

And if you're a founder, contact us - we want to help you!