Current Encryption Project Evolution Trend Analysis

In order to study the development direction of current encryption projects, we analyzed 43 projects that have not yet conducted token generation events (TGE). Through an in-depth study of these projects, we discovered some interesting data and the mainstream directions and evolution trends of current encryption projects. Here are the 8 small trends we summarized:

1. Artificial Intelligence Becomes the Hottest Track

Artificial intelligence-related projects account for as much as 25.5%, with a total of 11 projects. These projects show diversified development and can be mainly divided into three categories: AI-specific blockchain, decentralized AI (DeFi Agent), and AI infrastructure. Among them, AI-specific blockchain projects have received the most funding.

2. Layer 1 Blockchains Show High Performance and Verticalization Trends

Layer 1 blockchain projects remain popular, accounting for 23.2%. These projects are mainly divided into high-performance Layer 1, Layer 1 customized for AI, and dedicated data-type Layer 1.

3. Full Chain Applications Become a New Trend

The proportion of infrastructure and application projects across the entire blockchain reaches 18.6%, including Web3 operating systems that support multi-chain deployed dApps, customized Rollup platforms, and one-stop multi-chain financial platforms.

4. The Emergence of Vertical Layer 2 Trends

General Layer 2 projects have almost disappeared, replaced by vertical Layer 2 projects targeting specific areas, such as Layer 2 that supports EVM and SVM, and Layer 2 focused on the DeFi ecosystem.

5. The number of Bitcoin ecosystem projects has decreased

The number of Bitcoin-related projects has significantly decreased, with only 4 projects remaining, mainly focused on providing BTC yields, cross-chain DeFi, and infrastructure.

6. ZK technology is still in the infrastructure and service stage

Projects in the ZK track mainly focus on providing infrastructure and technical services, such as general ZK protocols, ZK proof infrastructure, etc.

7. The traditional race track projects are decreasing and showing a trend of marginalization.

The number of once-popular projects in GameFi, SocialFi, DID, Depin, and other sectors has significantly decreased, demonstrating the strong cyclicality of the encryption industry.

8. Layer 1, AI, and the entire chain have become the highest funding tracks

These three tracks basically represent the main development trends of current encryption projects. Among them, high-performance Layer 1 blockchain projects have received the highest funding, reaching $224 million. AI-specific blockchains and one-stop multi-chain financial platforms follow closely behind.

Summary

Through the study of these 43 projects that have not undergone TGE, we found that both Layer 1 and Layer 2 are showing a trend towards verticalization, with a large amount of financing concentrated in the vertical Layer 1 and Layer 2 fields. AI blockchain has become the hottest track, and full-chain applications are the mainstream trend of chains and applications. At the same time, many traditional tracks are gradually declining, and a new round of encryption cycles is taking shape. These trends reflect the main development directions of current encryption projects, providing valuable references for investors and entrepreneurs.