Why Trade On-chain?
Market Trend
Since January 2024, on-chain trading has become a dominant trend in the cryptocurrency market, especially in the Solana ecosystem. This transformation is reshaping the entire cryptocurrency business model and investment opportunities.
Evolution of Crypto Business Model
Traditional crypto asset issuance has several limitations:
- Multiple intermediaries between team formation and exchange listing extract the most profit
- Retail investors at the bottom of the chain have minimal profit opportunities
- This model has become increasingly unsustainable since the last cycle
On-chain meme asset issuance has changed this dynamic:
- Platforms like Pump.Fun have significantly lowered the barrier to asset issuance
- Improved efficiency in token launches
- Gives retail investors access to low-cap entries (below $100K market cap)
Market Structure Changes
1. Explosive Growth
- Memecoin sector shows explosive growth, primarily on Solana
- Significant wealth effect with abundant liquidity
- Projects can grow from sub-$100K to over $1B market cap
- Opportunities exist for both short-term trading and long-term investment
2. Market Scale Expansion
- Memecoin sector market cap grew from $40B to $120B (Nov 2024 - Jan 2025)
- Continuous capital inflow and increasing investor participation
- Current rapid growth indicates memecoins as the dominant trend
- Trump's memecoin launch demonstrates global mainstream breakthrough
3. Barbell Market Structure
The current cryptocurrency market shows a distinct barbell structure:
- Top Assets: BTC, SOL, and other mainstream coins
- Long Tail: On-chain memecoins and innovative projects
- Middle Shrinkage: Traditional exchange-listed tokens (VC coins) struggling to grow
New Opportunities
- Explosive Growth: Frequent wealth creation events on Solana
- High Ceiling: Quality projects can reach over $1B market cap
- Low Entry Barrier: Retail users can participate in early stages
4. Sector Evolution
On-chain trading has witnessed key cryptocurrency market development phases:
- DeFi Summer: Explosion of decentralized finance
- Chain Ecosystem Memes: Cultural token waves across major chains
- AI Agent: Integration of artificial intelligence with blockchain
These new sectors and trends originate from on-chain activities, representing new wealth creation opportunities in the crypto space. Adapting to the current market cycle requires understanding and participating in these innovations.
On-chain Advantages
Core Benefits
On-chain trading's key features: complete market transparency + zero-barrier entry + efficient trading mechanisms. These three elements create an unprecedented investment environment.
| Advantage Type | Key Features | Investor Benefits |
|---|---|---|
| 🌟 Zero-barrier Value Discovery | • No institutional pricing • Direct market access • Open participation | • Low-cap entry opportunities • Early-stage participation • Fair competition environment |
| ⚡ Efficient Market Mechanism | • Fast transaction confirmation • Minimal transaction costs • Abundant liquidity | • Flexible trading • Lower operating costs • Scalable growth potential |
| 📊 Complete Transparency | • All data visible • Traceable fund flows • Public holdings info | • Market insight • Whale tracking • Risk monitoring |
Important Notice
While on-chain trading offers numerous advantages, investors need appropriate skills and tools to leverage these benefits. It's recommended to familiarize yourself with relevant tools and operations before active participation.
Can You Get Rich On-chain?
Opportunities and Risks
Due to low-cap entry possibilities and high market cap potential, on-chain trading has produced remarkable success stories. However, be aware:
- Low market cap assets carry extreme risks
- Learning costs (losses) are part of the journey
- Requires significant time and effort investment