What's the future for Web3 adoption
Published: 02:09 PM,Sep 23,2023 | EDITED : 07:09 PM,Sep 23,2023
As the web3 and crypto space continues to evolve, the question of whether web3 and crypto adoption are necessary becomes increasingly relevant. After I attended Token2049 in Singapore last week - the largest industry event in the world, where industry leaders passionately advocate for mass adoption - I've contemplated this question extensively.
Approximately, over the past three years, the journey of adoption has been upheld by three core pillars: Finance, Economy, and Entertainment (in a broad sense). Let's delve into each of these pillars before we tackle the elephant in the room: infrastructure.
Finance: The financial sector has been a driving force behind crypto adoption, primarily through the rise of decentralized finance (DeFi). During the so called “crypto summer” or “bull run”, the industry saw a surges in number of protocols promoting borrowing, lending, staking, and swapping. Among traders, DeFi dominated the conversation. However, nowadays despite the impressive growth in Total Value Locked (TVL) in these protocols, the number of active DeFi participants has stagnated. For example, THORChain recorded over $1 billion in transactions last month, yet other protocols struggled to maintain their traction. This has led many to question whether DeFi alone can propel the next wave of adoption. In numerical terms there seem to be approximately only 2.5 million participants in DeFi. A very small number for global adoption.
Economy: Economic concerns have also played a pivotal role in fostering crypto adoption, particularly in regions with rapidly depreciating fiat currencies. In such contexts, individuals seek refuge from currency depreciation and look to cryptocurrencies, particularly Bitcoin (BTC), as a store of value. Türkiye (formerly Turkey) has surpassed 50% of the population holding crypto. A recent report from KuCoin indicates that 71% of crypto holders in Türkiye hold BTC, suggesting a widespread desire for stability in the face of economic uncertainty. This form of adoption, driven by a desire for financial security, is distinct from speculative trading.
Entertainment: The world of entertainment, notably through non-fungible tokens (NFTs) and gaming, has significantly contributed to global crypto adoption. NFTs, in particular, have experienced remarkable growth globally, but it was short-lived. Gaming, under the umbrella of GameFi, has also played a pivotal role. The Philippines serves as an illuminating case study, where a multitude of users are engaged in small transactions, collectively contributing to substantial and sustainable adoption.
The elephant in the room, Infrastructure: Infrastructure has become a buzzword within the crypto community, often overemphasized by industry players. Myself included. While it has spurred development and implementation, it's essential to recognize that infrastructure alone isn't the driver of adoption; rather, it provides the essential highway. True adoption is witnessed through the activities on this highway—the 'cars' racing towards a decentralized future.
As we reflect on the trajectory of crypto and Web3 adoption, the question arises: what will fuel the next wave? The answer may be multifaceted, as innovation continues to drive the space forward. The Web3 evolving landscape changes things quite quickly, and it is crucial to keep an eye on emerging trends and technologies that could unlock the untapped potential of this transformative movement.
Dear readers, I extend an invitation to you to contribute your valuable insights and forecasts regarding the driving forces that will usher in the next wave of crypto and Web3 adoption.
Approximately, over the past three years, the journey of adoption has been upheld by three core pillars: Finance, Economy, and Entertainment (in a broad sense). Let's delve into each of these pillars before we tackle the elephant in the room: infrastructure.
Finance: The financial sector has been a driving force behind crypto adoption, primarily through the rise of decentralized finance (DeFi). During the so called “crypto summer” or “bull run”, the industry saw a surges in number of protocols promoting borrowing, lending, staking, and swapping. Among traders, DeFi dominated the conversation. However, nowadays despite the impressive growth in Total Value Locked (TVL) in these protocols, the number of active DeFi participants has stagnated. For example, THORChain recorded over $1 billion in transactions last month, yet other protocols struggled to maintain their traction. This has led many to question whether DeFi alone can propel the next wave of adoption. In numerical terms there seem to be approximately only 2.5 million participants in DeFi. A very small number for global adoption.
Economy: Economic concerns have also played a pivotal role in fostering crypto adoption, particularly in regions with rapidly depreciating fiat currencies. In such contexts, individuals seek refuge from currency depreciation and look to cryptocurrencies, particularly Bitcoin (BTC), as a store of value. Türkiye (formerly Turkey) has surpassed 50% of the population holding crypto. A recent report from KuCoin indicates that 71% of crypto holders in Türkiye hold BTC, suggesting a widespread desire for stability in the face of economic uncertainty. This form of adoption, driven by a desire for financial security, is distinct from speculative trading.
Entertainment: The world of entertainment, notably through non-fungible tokens (NFTs) and gaming, has significantly contributed to global crypto adoption. NFTs, in particular, have experienced remarkable growth globally, but it was short-lived. Gaming, under the umbrella of GameFi, has also played a pivotal role. The Philippines serves as an illuminating case study, where a multitude of users are engaged in small transactions, collectively contributing to substantial and sustainable adoption.
The elephant in the room, Infrastructure: Infrastructure has become a buzzword within the crypto community, often overemphasized by industry players. Myself included. While it has spurred development and implementation, it's essential to recognize that infrastructure alone isn't the driver of adoption; rather, it provides the essential highway. True adoption is witnessed through the activities on this highway—the 'cars' racing towards a decentralized future.
As we reflect on the trajectory of crypto and Web3 adoption, the question arises: what will fuel the next wave? The answer may be multifaceted, as innovation continues to drive the space forward. The Web3 evolving landscape changes things quite quickly, and it is crucial to keep an eye on emerging trends and technologies that could unlock the untapped potential of this transformative movement.
Dear readers, I extend an invitation to you to contribute your valuable insights and forecasts regarding the driving forces that will usher in the next wave of crypto and Web3 adoption.