Learn how to identify web3 narratives to get in early.Uncover hidden narratives, spot emerging trends, and seize profitable opportunities before they go mainstream. Stay ahead of the curve in the fast-paced world of Web3 and maximize your success using web3 platforms like DeFiLlama.
In the rapidly evolving world of Web3, staying ahead of the curve is crucial.If you’ve ever spent significant time in this space, you would know that staying ahead not only pushes you ahead, but can allow you to reap rewards before they run out.
Identifying alpha, the term used to describe early opportunities with high potential, can be the key to maximizing your success. But how can you find these hidden narratives before they become mainstream?
Luckily, we have web3 platforms like DeFiLlama, a powerful tool that allows you to navigate the Web3 landscape and discover alpha early on. We’ll use the platform as a reference, but you can use most resources you prefer.
What is Alpha?
But first, let’s explore what alpha means in the context of Web3.
In simple terms, alpha refers to unique and profitable opportunities that are not widely known or recognized yet. It’s about being ahead of the pack, spotting trends, and capitalizing on them before the masses catch on. And with the fast-paced nature of the Web3 space, being early can make all the difference (and certainly makes the difference on your pockets!).
Guide on Finding Early Narratives
To start your quest for alpha, begin by assessing the traction a particular chain is receiving. One way to determine this is by examining the Total Value Locked (TVL) growth percentage. The TVL reflects the amount of capital locked within a decentralized finance (DeFi) protocol or platform. By analyzing the TVL growth over various timeframes, such as 7 days or 1 month, you can gain insights into the chain’s momentum and potential.
source:defillama
Make it a habit to check out the top 10 growing chains regularly. Their TVL growth serves as a strong indicator of increased interest and adoption. However, TVL alone does not paint the entire picture. Another valuable metric to consider is stablecoin inflow. This metric showcases the influx of new money into the ecosystem and acts as a reliable indicator of genuine growth.
To delve deeper into stablecoin options, platforms like DeFiLlama offer comprehensive insights into different protocols, including those based on stablecoins. By exploring the stablecoin inflow and observing which projects are experiencing notable increases, you can identify emerging trends and potential alpha opportunities.
Final Thoughts
In conclusion, if you’re seeking early alpha in the Web3 space, utilizing tools like DeFiLlama can significantly enhance your chances of success. Keep a close eye on TVL growth and stablecoin inflow to uncover hidden narratives and discover promising projects before they reach the mainstream. By being proactive and staying informed, you’ll be better positioned to seize the alpha and navigate the dynamic world of Web3 with confidence.