The Future of Crypto: ETH, Modular Blockchains, and Infrastructure Picks

Author

will stauner
January 25, 2024

In partnership with

The Phenom Crypto Update

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GM,

For those of you that have been in the space for awhile, this weeks pull back won't surprise you. These pullbacks are healthy and expected and provide a good buying opportunity. As the exuberance slows post ETF hype I expect the market to be down in the short term (couple weeks to a couple months). We will continue to see a lot of sell pressure on $BTC due to the outflows from the Grayscale Trust and the rest of the market follows the King. Personally I am using this period to load up on $ETH and a basket of Layer2’s and Alt L1’s . I am also keeping some dry powder to purchase a handful of new projects on the horizon. There are 3 narratives I am focusing on right now that I believe will payoff later this year.

  1. ETH dominance and wealth effect: ETH has underperformed relative to BTC and I expect it to catch up during 2024. I am stacking ETH as well as L2’s ($ARB, $OP). I am also farming projects in this space that do not have a token yet but are expected to have large airdrops (Linea, Scroll, ZKSync). ETH will perform well this year and the wealth effect will trickle down into its L2 eco system. There will be an endless stream of L2’s launched over the next few years but I expect the major ones (particularly projects that have already raise large VC funding) to perform very well over the medium term. Don’t fade ETH.

  2. Modular Blockchains: This is the hot new narrative this year and as such I expect it to do well this cycle. The tech is exciting as it allows for cheaper processing and faster transactions through Data Availability layers (DA) and modular processing. The two main projects in this space are Celestia and Injective. I am personally holding Celestia ($TIA) and staking it as I think its the frontrunner in the sector and I like the ecosystem airdrop opportunity provided by staking. I covered staking $TIA last week. Check it out here.

  3. Infrastructure: Everyone has heard the Phrase “Sell the shovels to the miners”. This play is in that mindset. Regardless of what consumer facing projects end up winning they all need backend infrastructure. I am personally only holding $LINK in this sector but I am actively looking for more promising projects in this sector.

This is a very brief overview but I am very bullish on these 3 areas going into 2024. If you have any questions or want to chat about crypto feel free to shoot me an email or DM on Twitter @willstauner

Here’s what we’ve got in this weeks letter:

  • Alpha Alert: Alt Layer Airdrop 🚨

  • How to Keep your wallet more secure 👮🏻‍♂️

  • Coinbase ETH client Drama

Have a great week,

Will

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Market Rundown

Guide to Wallet Security

Ensuring Security with Revoke Cash – A Step Towards Safer Wallet Practices

Protect your tokens

If you’ve been in crypto awhile you know the importance of maintaining stringent security measures cannot be overstressed. The recent Socket hack, resulting in the loss of $3.3 million due to unrevoked token allowances, is a stark reminder of the vulnerabilities inherent in the digital asset space. Engaging with decentralized applications (dApps) necessitates the issuance and approval of token allowances, essentially authorizing the dApp to transact with your tokens. However, these permissions, if left unchecked, can become weak points for hackers.

A simple tool for managing this risk is Revoke Cash emerges. RC offers a user-friendly interface to oversee and retract these token permissions.

How to Protect Yourself with Revoke Cash

  1. Initiate the Process: 

    Start by visiting Revoke Cash. You can input your wallet address or ENS name in the search bar or directly connect your wallet to manage your token approvals.

  2. Network Selection:

    Upon wallet connection, choose the network you want to check. By default, Revoke Cash is set on Ethereum, but offers the ability to manage other networks.

  3. Examine Token Approvals:

    Post network selection, all approvals linked to your wallet on the chosen network are displayed. For recent interactions, sort the approvals from 'Newest to Oldest' to quickly pinpoint any that may seem dubious. If you're searching for a specific approval, use the spender’s address for a targeted search.

  4. Action on Approvals:

    Scrutinize the list for any approvals that raise suspicion. For those, simply hit 'Revoke' to eliminate the threat. If you prefer to limit the scope rather than fully revoke, use the pencil icon to adjust the approval amount, tailoring it to your comfort level. You can also just blanket revoke to fully remove all connections.

Stay Vigilant

As pioneers in the Web3 domain, preparedness against exploits is not just advisable; it's imperative. Tools like Revoke Cash, coupled with discerning interactions with dApps (especially regarding their credibility and security measures), are pivotal in fortifying your digital asset's defenses.

Airdrop Alpha

AltLayer announced they will be airdropping to $TIA and $Eigenlayer Stakers!

Don’t worry if you haven’t staked Celestia or restaked on Eigenlayer yet. This validates our theory that these infrastructure layers will provide exposure to wide ranges of overlying consumer facing protocols.

Their first airdrop will be available to claim 1/25/24 - 2/25/24. Check out their tweet below for details.

BlockBuzz™️

Quick Hitters from the week

The Twitterverse

A collection of the most interesting stuff on Crypto Twitter this week

WAGMI

For the Crypto Culture

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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