Finally, some movement has emerged. As we approached 2024, the predicted year of renewed momentum, Q4 2023 has given us a preview of what's to come.
2024
Several key events are expected in 2024: the potential approval of Bitcoin ETFs, the pivotal Bitcoin halving, possible stabilization or reduction in interest rates, and incentives driven by the US presidential election, all signaling a robust bull market. The real challenge lies in outperforming peers. Key to this is investing in nascent but fundamental ecosystems.
Ethereum and Cosmos are at the forefront of this movement. The bullish trend was initiated by Bitcoin, Solana, and innovative alternatives like Kaspa. A pertinent question lingers: will DeFi and its infrastructure resurge in this cycle?
Other significant crypto segments include Privacy, RWAs (Real World Assets), DePIN (Decentralized Physical Infrastructure), Bitcoin’s blockspace (see inscriptions), Ethereum’s layer two (L2) technologies, and AI-oriented PoW alternatives like Bittensor and Qubic.
10102 Vault Strategy
Accumulating foundational assets continues to be 10102 Etherbase Vault’s primary focus. Check the activity tab for a detailed overview.
I recently wrote about the vault’s operational protocol Enzyme | 2023, addressing some challenges currently hindering growth for both managers and investors. It’s a comprehensive summary of the current state and what is needed to unlock the vision and true performance capabilities of our strategy.
Despite these constraints, the vault's performance aligns with our expectations, adopting a leveraged-like approach to the Ethereum ecosystem and its key components. The performance trajectory reflected a challenging first half of the year, but showed signs of recovery and improvement as the year progressed. I am optimistic that Ethereum is just embarking on its significant phase in this cycle.
While Ethereum's price recovery lags behind Bitcoin and others, indicating a potentially undervalued state, the underlying fundamentals are more robust than ever. We've observed a deflation of ETH since the merge, a blossoming of layer 2 scalability solutions (Arbitrum, Base, Scroll, Manta, etc.), and an uptick in volume and usage. The infrastructure is not only expanding internally but also across various ecosystems that are increasingly adopting EVM compatible applications (including Solana, Cosmos, Near, etc.).
Altogether this context points to a promising future for Ethereum and, consequently, a valuable opportunity for the 10102 Etherbase Vault. Additionally, Chainlink being among the top allocations is deliberate. Currently undervalued and significantly below its historical high of ~$52, LINK offers a unique hedge within a crypto portfolio as a major, chain-agnostic asset with multiple secure components widely utilized across diverse networks and blockchains.
10102 DeFi Corner
Chainlink
The staking roadmap is progressing and recently reached v0.2 on its way to v1, which will include user fee rewards, node delegation, and advanced reputation tracking. Chainlink’s oracles continue to lead, being the top choice for highly reliable data needs. The Cross-Chain Interoperability Protocol (CCIP) is rapidly gaining attention and has become one of the most demanded resource in a very short amount of time.
Polygon
Known for its significant partnerships, Polygon continues to show its prowess. As numerous other L2s enter the space, Polygon benefits from years of solid development, a new tokenomics model (Polygon 2.0), and a growing zkEVM infrastructure. The state of Polygon thread from the end of Q3 2023 by Messari Crypto provides further insights.
ENS
Adoption of ENS is accelerating. As the core of crypto recognizes its importance, mainstream incorporation is imminent. The latest statistics show that the ENS DAO continues to be one of the most profitable, independent of any market dynamics or native token. ENS's status as an essential public good continues to be endorsed by prominent figures like Vitalik, further legitimizing its significance.
10102 Insights
The 10102 Substack is now hosted directly on 10102’s website. While the main posts are published on the homepage, don’t forget to check out the notes for potential alpha, and bookmark insights.10102.io.
10102 Etherbase Vault
10102 Etherbase Vault symbolizes our strategic initiative to invest in the fundamental components of Ethereum for the long-term. This fund is rooted in the core principles of Ethereum, embodying a forward-thinking approach to blockchain investment.
Discord Community
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