Purpose-Built L1s

Opportunities.

Alt dispersion has been more prevalent than ever over the past years which is why the term “alt season” has been misdirected and hasn’t taken into account that we have a demand problem that can’t meet the crazy supply of altcoins that has continued to be released every day. This has been taken to the extreme with pump fun that industrialized the token launch process which exasperated the problem.

However, due to this you can not simply launch an L1 anymore and expect users to flock there automatically because people “want to be early”. This worked before but the current trend is evidently shifting away from that and we are now seeing a new wave of ecosystems taking place with purpose in mind.

What do I mean by this?

Solana has been notorious for being an onchain casino that has experienced wide success despite the controversy.

During this slower period, we have seen the emergence of Sonic which aims to be a DeFi-focused ecosystem and because of that, you get rewarded for focusing on DeFi there and not other plays. The same can be said for Berachain which is experiencing the same team, people farming BGT and holding Bera are thriving and it is a chain to enjoy fruitful APRs.

Additionally, we’ve recently seen the rise of Story which aims to bring a market for programmable IP. Story facilitates direct peer-to-peer transactions of intellectual property. The network coordinates IP assets through a graph structure, with nodes representing individual assets and edges denoting legal and economic relationships between them.

Once again, it was built with a purpose and specific use case. It’s likely that one of the bigger opportunities right now is identifying relevant purpose-built L1s and understanding how they can capture demand and value for end users and builders.