Thread by @ItsMeOhHeyMatty

When evaluating ecosystems for growth historically we can identify 3 common trends.

A thread...🧵

Believe it or not, the first trend is a figurehead or even a martyr.

Common examples that come to mind @VitalikButerin @IOHK_Charles @cz_binance or even Satoshi himself. Though it's not required the top ecosystems seemed to have a central advocate regardless of their influence.

This is a sub trend but narrative is also important. During the Wonderland days #AVAX exploded In growth because advocates spoke about how it was the L2 solution for DeFi causing waves of money to enter the ecosystem to build temporary roads. ETH scaling issues helped.

The 2nd important trend to identify is liquidity or venture. Having a big venture network deploying capital is key. They will not only help your marketing vertical but the scale is a numbers game. For every 1,000 failed projects your hope is 3 have moderate or better success.

Even among those 3, you have to get those numbers up as long-term sustainability is not gtd. In fact it's unlikely.

The third and final trend can work in parallel to venture/liquidity or could decouple. This is Users or Community. They are not the same in the early stage. For example, @Cardano is very strong but early user growth is still low in comparison to what it could become at scale.

Another example of this is @terra_money whose massive growth has been fueled by UST specifically. Sometimes the absence of users, ventures, or central figurehead can be superseded by the simple fact that people...like to make money xD.

So when we take this information into consideration what L1 or L2 ecosystems am I looking at and why? We are talking ecosystems that have not scaled or hit terminal velocity. Looking at you #btc #ethereum #bsc #AVAX

#defi #crypto #nft

The first one i have already mentioned which is @Cardano yes it is still in development and yes I am unsure exactly how impactful it will be for scaling but sometimes. The thing is narrative isn't about facts its about being able to argue one's points and win ground.

To my point about #AVAX no one really believed it would be the future for #DeFi simply a place to get DeFi for cheaper fees while #ETH was bogged down.

@Cardano is a ferverant community, has a central figure head though @IOHK_Charles would hate to hear that, and a lot of money!

The last part is very important. The thing is software is tough. Getting it out there can be the most important step vs getting it right. With the right amount of money, you can fix anything and placate your community for buy-in. It's my number 1 pick for the next cycle.

My 2nd pick is none other than @Algorand . Truth be told I was an #Algorand hater for a long time. That was until I met an analyst at @borderless_cap who recently launched a $500m AUM fund specifically for Algorand.

coindesk.com/business/2021/…

Just imagine what you could build?

So when we look at our #Algorand check list we have Venture locked down. Also, they recently partnered with FIFA as the official blockchain. That's a serious bid. Note they do lack a central figurehead. @StaciW_DC only has 10k on Twitter but this can change.

Algorand community is present and I think this will grow. I was at their Miami event which was pretty dope. Even had the Mayor and Diplo attend. Remember it's a numbers game and with a $500m AUM fund behind it a blind squirrel will surely find its nut.

My 3rd and final choice is going to be @NEARProtocol not only am I witnessing a lot of private money get buried into this ecosystem both from their raise and externally but the back channel chatter on #NEARprotocol is rising to a fever pitch.

Did you know that @NEARProtocol has over 400k Twitter followers with solid engagement on social posts. That's more than the @Ripple_XRP1 #xrparmy

Some outliers that i didn't mention and won't go into detail but feel like I should put out there...

Terra Luna
Kadena
Polkadot

One thing to note about Polkadot. It will eventually grow IMO but usability is awful between injection wallet etc and the gatekeeping with dot sales.

Thanks for taking the time to read and if you liked this make sure to share and like. Congrats you made it!

#crypto #defi #nft